Assofermet forecasts Italian scrap price increases

Uncertainty persists in the Italian scrap market despite activity restarting after the August break. The continued bad performance of finished product markets is responsible for the current lull, local trade association Assofermet says in its market report monitored by Kallanish.

Some domestic price decreases have been registered so far, but no contracts have been implemented for large scrap volumes. The situation may however change, with price increases possible and clarity foreseen in the second half of the month. “Today’s prices are considered low by sellers. Should the scenario change, they will most likely undergo increases,” Assofermet forecasts, and highlights scrap shortages in Italy.

Meanwhile, the association notes a general weakness in the pig iron market. “Good availability remains, as do price differences depending on origin, with a still important gap between pig iron of Russian origin and other sources,” the note says. Price increases are to be expected in the second part of the month.

Over the past two weeks, ferroalloys prices have increased in India but other markets have not followed the Indian hikes. Better visibility on international prices will also be achieved in the coming weeks. The shutdown of the manganese mine in Gabon could also have an impact on prices, Assofermet concludes.

Natalia Capra France