According to Assofermet, the Italian steel distributors' association, commenting on the raw materials market for the steel industry, the downward trend in the scrap market continued in Italy in June with prices falling further by 100-130€/mt. The association said that "perhaps the even more worrying element is that more than one domestic mill stopping purchase of scrap ".
This situation is in fact triggering two important phenomena; the first is the management of scrap inventory build-up, in addition to the slowdown of scrap collection, while the second is that certain scrap qualities can no longer be supplied "as the costs, both for transport and for their preparation (processing of scrap), are no longer adequately covered by current market values".
Unfortunately, the closures announced by many steel mills, and in some cases already in place, will not allow a short-term turnaround.
On an international level, Assofermet's forecasts seem to confirm further declines both in Germany and in France, "the downward trend was recorded in almost all European countries, albeit with slightly different timing and entities".
Even in the stainless steel scrap sector, the market recorded lower levels by 50 percent after the second half of June. "The European and international markets are essentially blocked and prices no longer follow the Nickel trend of the London Stock Exchange (LME )," Assofermet noted. According to Assofermet, among the factors that contributed to this negative scenario, the main ones are the daily drop in prices, the sharp decrease in demand and the new export duties issued in India.