According to a new press release from Assofermet, the association representing Italian distributors of scrap, raw materials, and steel products, there were no major changes in either scrap prices or mill production in February. This stability was possible due to the continued scarcity of scrap supply, which offset the lower demand for scrap from steel mills resulting from the drop in finished steel prices. The forecast for March sees a drop in quotations if finished steel production does not improve.
In the international markets, the second part of February was characterized by declines, both in Turkey and Europe, due to low scrap demand as requests for new finished products were low. Assofermet reported fair demand for semi-finished products, especially billets, “probably aimed at calming the price of scrap”. The Asian markets remain weak in terms of both prices and demand.
With regard to stainless steel scrap, demand was sluggish in February and the low availability of scrap caused quotations to rise in the middle of the month and then fall at the end of February. Alloys and super alloys were still in good demand and prices were not particularly high, while high-speed and super high-speed steels saw a drop in demand from users despite low availability.
In February, Assofermet reported substantial stability in the Italian pig iron market, with no price reductions but a drop in demand. Availability therefore remains good, but not excessive. There was also little demand in the Turkish market and also few offers from Russia. The association points out that there was a drop in volumes of Russian pig iron in the Chinese market, mainly due to the increase in freight rates from the Black Sea, which makes the Chinese market unattractive for Russian suppliers. On the hematite iron front, February saw a stable market, characterized by a slowdown in production and, consequently, in purchases. Prices for spheroidal cast iron and ferroalloys were also stable.