Lower availability supports Italian scrap prices: Assofermet

The scrap shortage at Italian merchants’ yards and the lower collection caused by production cuts in recent months will contribute to supporting domestic scrap values, with some increases occurring in new March contracts, Italian steel trade association Assofermet says in its latest market note monitored by Kallanish.

Concerns about high transport costs persist in the sector. February was mostly a stable month in terms of prices. Last month, mills’ purchasing volumes and scrap availability were limited. In the last week of February, the low scrap availability together with increasing Turkish import values caused domestic prices to tick up, Assofermet comments.

Meanwhile, pig iron availability remains good in Italy. In February, Russian producers seemed to have prioritised slab production to the detriment of pig iron supply. Ukrainian producers have remained absent from the local pig iron market. Last month, the association observed a general pig iron price stability with some attempts at increases.

Italian scrap prices increased €10/tonne ($10.6) in the last week of February and continue to hike this month, with contracts being negotiated this week (see Kallanish passim).

Natalia Capra France