Italian steel trade association Assofermet notes that there have been significant falls in Italian domestic scrap prices in June. The international market meanwhile saw initial stability followed by a price decline. In the international arena however, June ended with some price rises that have been sustained by very few transactions,Kallanish learns from the association’s monthly market report.
The domestic contraction in Italian scrap values was in line with lower quantities purchased by mills last month. This shows a weak demand for finished products in line with the general downturn of the Italian economic situation, the association says.
Last month, prices for pig iron were also in line with weak scrap values in Italy. Major CIS producers are offering less quantities to both Italy and the wider Mediterranean market and prefer to sell much of their production to the US. The latter region is a more responsive and reliable market in terms of both demand and payments, Assofermet notes.
The lack of offers for HBI in Italy persisted in June while prices have remained unchanged. Assofermet has also registered continued erosion in ferroalloy prices and margins.