Latest situation in local Italian scrap market
The situation in the local Italian scrap market has remained essentially unchanged in the past week, apart from a slight softening of prices of lower quality scrap. As previously reported, prices of high quality scrap in the Italian domestic market are supported by decent demand, while prices of lower quality material are weak because of sluggish domestic rebar sales and the absence of rebar exports to Algeria due to the non-release of import licenses in the North African country.
Accordingly, prices of lower quality scrap have decreased slightly in the past week, i.e., by €5/mt. Because of the lack of rebar sales, Italian rebar producers have been forced to reduce their production in recent weeks, and they are not in a position to pay higher prices for scrap. Meanwhile, a few other steel producers are showing good demand for scrap, and this is why domestic scrap prices in Italy have not yet decreased across the board. However, market players are worried about the situation regarding rebar, which could lead to a general fall in domestic scrap prices in the coming weeks.
Average spot prices in the local Italian scrap market are as follows:
|Quality||Average spot price (€/mt)|
|Turnings (E5)||205-215 ($228-239/mt)|
|HMS (E1/E3)||230-235 ($255-261/mt)|
|Shredded scrap (E40)||260-270 ($289-300/mt)|
|Busheling (E8)||250-255 ($278-283/mt)|
Prices include delivery and exclude VAT.
€1 = $1.11
*This was published on SteelOrbis website on May 17, 2017.