Market note on the international scrap situation

On November 7, Assofermet, the national Italian association representing trading, distribution, and pre-processing companies of iron and steel products, released a market report offering valuable insights into the current trends and dynamics of the scrap industry.

In the first half of October, the Turkish scrap market experienced a gradual price decline, primarily due to reduced steel demand. Subsequently, prices rebounded as international geopolitical tensions escalated but dipped again toward the end of the month, fluctuating in the range of US$15 to US$20.

Asian markets, notably India, mirrored the same trend, with a more pronounced price movement from the third week onward, narrowing the gap with the reference Turkish price. European markets, on the other hand, have demonstrated greater stability in quotations, with low trading volumes occasionally resulting in a slight price reduction.

In October, Italy's steel market remained stable with low demand. Despite a decline in scrap availability, it exceeded the requirements of steel mills, leading to a surplus of scrap. November sees a sentiment shift, halting the downward trend in quotations. Notably, some Italian steel mills are now requesting scrap purchases, but storing them at suppliers for later delivery. Concerns persist regarding potential scrap scarcity, should Italian producers' demand rise, prompting careful monitoring of steel production recovery.