Assofermet: Italian scrap metal market strengthened in January, demand forecast remains uncertain

The Italian scrap metal market closed in January on a decidedly firmer footing than at the end of 2025. In the first half of the month, prices for ferrous scrap increased by about € 20-25/ton, which reinforced a more optimistic mood among operators in the collection, recovery, processing and trading segments. On the demand side, these increases were absorbed, but without opening the door for further growth: even where traders committed to delivering significant volumes, the market failed to move higher, instead entering a consolidation phase in the second half of the month and maintaining still positive expectations for February.

However, the beginning of the new month is still difficult to interpret. On the one hand, some steel producers continue to suffer from weak sales of finished steel and are considering reducing production; on the other hand, factories supported by stronger order portfolios appear ready to provide further price increases to ensure continuity of scrap shipments. In this context, much will depend on the availability of scrap in shipyards and, above all, on the evolution of demand for finished steel, which remains far from buoyant. The risk of a further slowdown in production and a subsequent weakening in demand for scrap metal cannot be excluded. Regardless of these factors, the shortage of high-quality scrap continues to be the main driver of the market.

On the international front, January confirmed the tough market conditions,