December affirmed the positive price trend in Italy's national scrap metal sector, despite the sluggish production of steel mills, according to Assofermet, the association representing Italian distributors of scrap, raw materials and steel products, in a new press release.
However, the limited availability of scrap metal has posed challenges in meeting the demands of the national steel industry. Nonetheless, traders’ expectations for the new year foresee further price hikes, especially for high-quality scrap. International issues such as the ongoing wars in Ukraine and the Middle East, coupled with global political tensions and logistical problems like piracy incidents in the Red Sea and the Suez Canal, are of concern to industry operators. Weak demand for finished products is forcing steel mills to cut production. The sentiment for January and the first quarter of 2024 is characterized by caution, with future developments being awaited.
The international scrap market, with a focus on Turkey, concluded a challenging year, while maintaining positivity from the previous month. The early days of January witnessed a reopening of transactions and a rise in raw material prices, with scrap metal taking the lead. Assofermet commented, “On the flip side, Asian markets, particularly India, have shown overall weakness due to a slowdown in domestic steel demand, contributing to a divergence from the international price dynamics.”
In Europe, markets have displayed a positive trend and price stability, influenced by uneven demand across various countries. The aforementioned tensions in the Middle East and the Suez Canal render the outlook uncertain, making it premature to make predictions.
Regarding stainless steel scrap, volumes from steel mills in December were reduced but aligned with historical averages. Quotations indicated some decreases.
Pig iron saw additional price increases internationally, with growing demand in the Italian market. Price differences between the European market and the US/world market persist.
Transactions for hematite pig iron in the foundry sector regained momentum in December, interrupting the deceleration trend of recent months. Despite a broad supply of material, primarily Russian, prices remain attractive, albeit with upward corrections.
The situation as regards ductile iron in December was challenging to assess due to the holiday season, but a balance between supply and demand was perceived, keeping prices stable. The downtrend of prices has concluded and producers have already indicated the need to raise quotations.
"Ferroalloys, especially those containing Mn, indicated a significant upswing due to the critical situation in the Red Sea, causing a sharp rise in freight rates from India and China to Europe," concluded the association.