Italian steel trade association Assofermet says that the first signs of a stabilisation in international scrap prices have been evident in the final days of September. Demand for long products in Italy remains at “… historic lows” however, the organisation adds.
The association notes that higher volumes of scrap were sold at an international level in late September following a negative month in terms of scrap price trends and volumes. The increase in sales during the latter days of the month had the effect of stabilising scrap prices, Kallanish learns from the association’s monthly market report.
“A much worse situation has been registered in the domestic market where scrap prices have reduced significantly. It is clear that the market is looking for balance as local producers chase domestic demand that appears to have reached historic lows,” the report reads.
With regard to pig iron the association has registered a complete lack of offers from Italian mills as negotiations between major CIS producers and US buyers are still ongoing. Pig iron is only available from ports but stocks at ports are also beginning to deplete, Assofermet notes.
The association has also registered continued erosion in ferroalloy prices and margins in September.