Sentiment in the Italian scrap market is overall positive in February, despite the continued uncertainty regarding local mills’ production volumes for this month, Italian trade association Assofermet says in its market note monitored by Kallanish.
“The hope is that orders for the finished product will be numerous, coupled with strong downstream end-user consumption,” the report says.
January was a stable month in terms of activity, with prices increasing by €15-20/tonne ($16-21) month-on-month thanks to sustained demand from steelmakers. However, concern persists related to railway and high truck transport costs.
The association registered in January price increases for pig iron from Russian but also Ukrainian producers. January contracts were mainly implemented by traders and for material that was mostly sold to foundries. Pig iron from the CIS region has been less attractive for mills that bought lower quantities due to the high prices.
The first few Italian scrap contracts and negotiations for February delivery indicate stability and some increases of €10/t ($10.9) for demanded grades such as chiselled E1 and demolition E3. Demand is considered to be at good levels despite the uncertainty hovering over finished long products, sales of which are slow.
In other countries, such as France and Germany, there are expectations of stable prices for February, with some increases for the popular grades (see Kallanish 3 February).
Natalia Capra France
