The slowdown in demand for processing steel has pushed steel producers to sharply reduce their activity and scrap purchases, which has caused downward pressure on new contracts. According to Assofermet, the proposed reductions were in the range of 20-30 euros/ton compared to previous highs, which is a sharper decline than market operators expected. Despite the negative sentiment, shipments remained strong during the month, partly due to accelerated sales of new scrap products by some manufacturers, who moved to eliminate inventory before further lowering prices.
In early July, the market is under pressure. Steelmakers are facing very weak demand for finished steel, high inventory levels, and already planned production shutdowns, factors that have all but halted purchases and offloads. As for the supply, there is no shortage of materials, but many traders are struggling to place the accumulated materials in the market, where prices are now clearly oriented downward.
The international picture also remains negative. In June, the Turkish market, the main scrap market, recorded a decrease of $25-30/ton due to weak demand and the lack of alternative markets capable of supporting quotations. In Europe, Spain recorded a decrease of about 20 euros per ton, and in France there was a significant transfer of contracts. Flows from Germany to Italy were slightly lower than in May, partly due to a slowdown in some Italian factories related to the car supply chain.
Assofermet points to a continuation of the weak phase in July, with further price declines expected, although operators remain cautious about the size of the next correction. Seasonal factors are also putting pressure on activity: several Italian steel producers are slowing production, and summer shutdowns are starting in Germany.
In the stainless steel scrap segment, June marked a change of direction after previous stability. There was a correction in the second half of the month
