Assofermet sees scrap shortage in Italy

Italian scrap sentiment for the first days of April seems positive, says Italian trade association Assofermet in its market note monitored by Kallanish.

Scrap availability remains limited, meaning no strong price declines are forecast for this month. In March, the association says it registered “a very lively market with continuously rising prices and good demand.” It adds: “Availability of scrap was good, as was demand from steel mills.” Following the first scrap contracts agreed in April, the Italian market is settling on a minor €10/tonne ($10.9) month-on-month decline (see Kallanish 7 April).

“It is necessary to point out that the steel mills, especially the producers of wire rod and rebar, saw their sales orders fall and are facing difficulties in sustaining prices, probably due to the uncertainties surrounding the developments of the PNRR [national recovery plan],” Assofermet continues. Numerous building sites and infrastructure projects are idle, waiting for financial support from the European recovery fund, it adds.

Meanwhile, the gap between Russian, Ukrainian and Brazilian pig iron prices is persisting in Italy, but availability of material remains good. Last month, demand from mills was not significant. Assofermet registered increasing prices for pig iron, mostly absorbed by the euro-dollar exchange rate.

Natalia Capra France