Italy

Europe’s stainless steel scrap market remained broadly stable throughout the latest quarter. Seasonal slowdowns across the supply chain, combined with subdued end-user demand, prevented a more meaningful recovery in market activity, thus prompting stainless steel producers to maintain a cautious purchasing strategy. European mills have been operating at conservative production levels of late, partly owing to the traditional summer slowdown.

Scrap availability has remained relatively limited, helping to support the market despite modest consumption. Ferroalloys have continued to be the main driver of market performance, with molybdenum supporting high-alloy stainless grades. Indonesia has remained the main source of competitive pressure through the continued supply of nickel pig iron and low-cost stainless semi-finished products.

The implementation of the EU’s Carbon Border Adjustment Mechanism and other European trade measures have started to influence procurement strategies, although their impact on the physical scrap market is a gradual one. Global market dynamics continue to play a greater role than regional fundamentals in shaping Europe’s stainless steel scrap market.

The Italian stainless steel scrap market continues to demonstrate greater resilience than in many other parts of Europe, supported by a well-established recycling industry and a strong electric arc furnace production base. Demand remains selective, however, with steel producers purchasing primarily in line with immediate production requirements. This cautious approach continues to limit any significant recovery in trading volumes.

The availability of high-quality scrap remains a strategic factor, while increasing attention paid to traceability, sustainability and carbon footprint is expected to strengthen the role of domestic recycled raw materials over the medium term.

At the same time, Italian market participants continue to face strong competitive pressure from imported semi-finished products and an economic environment characterised by tight margins and ongoing cost control.

Looking ahead to the final quarter of 2026, the Italian market is expected to remain broadly stable. Unless industrial demand improves significantly or international trade policies change materially, market activity is likely to remain balanced, with greater emphasis on scrap quality rather than transaction volumes.