Ferrous Scrap Prices Rose in September Amid Energy Costs
Steel manufacturers saw production costs climb as energy prices and freight rates constrained global supply chains.
Updated on Oct. 7, 2026 in Inflation
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In September 2026, Italian ferrous scrap prices increased by €5-15/mt for medium-to-high grades, driven by inventory replenishment and rising logistics expenses. High energy costs further pressured steelmakers, adding up to €60/mt to production expenses across the region.
Why it matters
The confluence of rising scrap prices and elevated energy costs forced many steel plants to reduce shifts or halt operations entirely. These logistical and operational hurdles are reshaping supply chains, evidenced by a significant 50 percent increase in U.S. pig iron imports.
Italian ferrous scrap prices rose €5-15/mt while freight rates from Brazil to Europe jumped from $38/mt to $50/mt. Meanwhile, U.S. pig iron imports surged 50 percent in September as energy costs added €60/mt to steel production.
The players
Assofermet
The Italian trade association representing companies involved in the distribution and recycling of steel, metals, and scrap.
The details
Steelmakers attempted to stabilize supply by increasing purchasing activity following summer price cuts. However, broader market volatility was exacerbated as geopolitical tensions restricted vessel availability, which in turn spiked insurance premiums and transit times. Energy-intensive facilities bore the brunt of these costs, leading to widespread shifts in production scheduling.
Timeline
Late August: International scrap price upward trend began.
September: Italian ferrous scrap prices increased.
End of September: European price increases became concentrated.
October: Market outlook currently ranges from stability to optimism.
End of year: Imported billets are expected to arrive.
Market Landscape
This development follows the 2026 energy-driven steel production slowdown documented by Assofermet. It illustrates a departure from previous market patterns as regional producers grapple with the cumulative effect of high energy costs and restricted vessel availability.
Operators in manufacturing should monitor the end-of-year arrival of imported billets as a signal for potential price stabilization. Review logistics contracts immediately, as rising freight rates are currently absorbing significant portions of industrial operating margins.
The takeaway
Rising raw material costs are forcing steelmakers to rethink their inventory strategies in an era of volatile logistics. Monitor local supplier scrap prices closely throughout the fourth quarter, as Assofermet anticipates that export activity will remain a critical buffer against domestic volatility.
Further reading
For broader trends affecting production costs, see Inflation.
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