During the first half of December last year, the local Italian scrap market witnessed price increases in the range of €10-20/mt ($11-22/mt), while in the second half of the month the market was characterized by the typical Christmas holiday slowdown in activity, amid halts in steel production. Turning to the New Year, the Italian scrap market, which had effectively reopened after the holidays on Monday, January 11, observed an immediate slight drop of €3-5/mt ($3.3-5.5/mt) in prices, which have since moved on a stable trend.
Demand in the market is weak, while there is no shortage of stocks. Average spot prices in the local Italian scrap market are as follows:
Quality | Average spot price (€/mt) |
Turnings (E5) | 130-140 ($143-154/mt) |
HMS (E1/E3) | 165-170/175 ($182-187/193/mt) |
Shredded scrap (E40) | 180-190 ($198-209/mt) |
Busheling (E8) | 175-185 ($193-204/mt) |
Prices include delivery and exclude VAT.
Looking ahead to next month, some Italian steel producers forecast a €10-15/mt ($11-17/mt) decrease in scrap prices since order activity in the domestic finished steel marked is very slack. On the other hand, other market players say there will be no significant fluctuation in prices because of two reasons: the winter weather condition with snowfalls possible, and the decent volume of orders which Italian steel producers received at the end of 2015 that will require them to keep their plants working. Meanwhile, in southern Europe, scrap prices are on the high side of the Italian range and are €5/mt ($5.5/mt) higher in some cases, while there is no tightness as regards availability of stocks, just like in Italy.
€1 = $1.10