The scrap declining trend seen in May is continuing in June, following a significant fall in Italy last month between €100-130/tonne ($107-139/t), says Italian trade association Assofermet in its monthly market note monitored by Kallanish.
The drastic reduction of orders for the finished product has pushed Italian mills to delay and in some cases suspend scrap reception last month. The Russian-Ukrainian conflict and the Chinese pandemic revival continue to negatively impact international scrap prices and demand. In Turkey, the weak transaction volumes and lower prices are continuing after the $100/t May price fall that dragged down European prices.
Meanwhile, pig iron prices in Turkey and Europe are following the scrap falls this month.
“The prices of Russian pig iron, which are falling further, are not receiving any noticeable interest from buyers, who prefer to wait having good stocks and little visibility on finished products’ sale,” Assofermet says. It adds that the hot-briquetted iron (HBI) production cuts, as well as the arrival of some volumes purchased in the previous months, confirm a stand-off in HBI sales in Italy, despite the further price reduction.
Italian mills continue to withhold their ferroalloys purchases, limiting their procurement to small volumes, convinced that prices will continue to fall in June.
“The Italian steel mills have a static and wait-and-see attitude, while the European mills have proved and are proving to be more dynamic with more sustained purchases,” the note concludes.
Natalia Capra France