Stability is probably the best term to describe the September market, said Assofermet, the association representing Italian distributors of scrap, raw materials, and steel products, in a press release.
Despite expectations of an upturn, sales of finished products have been increasingly limited, forcing steel mills to reduce their output. With steel mills’ scrap yards full, there could be a reduction in demand for scrap if demand for finished product does not increase. In addition, scrap supply is still shrinking and, as a result, merchants’ warehouses are emptier. Producers are ruling out a rebound in prices in the short term, and expectations for a recovery could be pushed back as far as next spring. Confidence in a possible improvement remains, though it seems difficult to hazard any forecasts in the short term, Assofermet stated.
Turkey also experienced stability in September, according to Assofermet’s press statement. The number of transactions was limited, with a further slowdown towards the end of the month. Asian markets, particularly India, were characterized by a consolidation of the competitive prices achieved between late August and early September, supported by a good volume of transactions in both containers and bulk, only to see a reduction in prices of about $15/mt during the past week. Weakness in finished products continues to affect prices and, more importantly, transaction volumes.
Assofermet also added demand for stainless scrap in Italy in September was average for the past few months (with the exception of August due to the summer closure), with a slight increase in prices and difficulties in the quantities availability due to the declining production of industries. In Europe, India and the Far East the scenario found was also similar.
As for pig iron, in the segment of basic cast iron, prices remained unchanged with a downward bias in view of the continuing low buying interest from steel mills.
"The low availability of pig iron from some Russian producers persists, and the introduction of the duty could partly boost sales in the domestic market, but without completely excluding exports," the association commented.
Demand for hematite pig iron has been rather weak, while on the supply side there is a stable situation where there is still ample availability, especially of material of Russian origin, with particularly attractive prices. Warehouses are still well supplied and customers are in a wait-and-see position.
In the ductile iron segment, a condition of oversupply remains, especially of Russian origin. At the same time, foundries are noting difficulties in filling their order books. As a result, reduced demand for material has been noted, with prices falling despite reported requests from producers for increases. "The increasing attention of the European authorities as regards cast iron imports from Russia," said Assofermet, "is beginning to cause concern among foundries."