According to Assofermet, the association representing Italian companies involved in the trading, distribution and processing of steel, scrap and non-ferrous metals, in its usual monthly market review, the Italian ferrous scrap market closed May with a generally stable trend, after a rise of 15-20 euros per tonne recorded at the beginning of the month. Thus, prices consolidated at high levels, although without any obvious new growth impulse.
The market continues to be affected primarily by the difficult logistics situation. Scrap yards are largely full and delivery times to steel mills have lengthened significantly. Early June also saw a divergence between traders, who are looking to protect price levels, and steel producers, who appear more cautious and may reduce their production schedules. As a result, the current market balance remains fragile, due in part to uncertainty over energy costs and weak finished steel sales, which could weigh on scrap demand in the near term.
On the international front, May saw greater volatility. In Turkey, the main scrap market, prices for HMS I/II 80:20 rose to almost $415/t CFR mid-month before falling by around $10-$13/t due to slowing demand for finished steel. The European market proved more resilient, with downward signals largely limited to Spain. In Asia, by contrast, weakness was more evident, particularly in India, which was also hit by competitive pressure from Chinese steel. Scrap availability in Europe remains limited while collectors continue to manage their inventories cautiously.
In the United States, the domestic market remained generally stable, supported by a balance between robust steel mill activity and more fluid seasonal scrap export flows. US deepwater scrap exports to Turkey continue to set the benchmark for the international market, with prices in the $405-408/t CFR range. For June, Assofermet expects US prices to remain broadly stable, while the Turkish market could see further modest adjustments.
In the stainless steel scrap segment, May confirmed a sideways trend, with prices broadly stable and with only limited fluctuations, in line with nickel prices on the London Metal Exchange. Slab availability continues to limit upward pressure, offering steelmakers an alternative to stainless steel scrap when scrap prices rise above a certain level. However, supplies of stainless steel scrap remain
