Fragile balance between supply and demand in Italian scrap market

Friday, 12 April 2013 17:44:06 (GMT+3)   |   Brescia

The Italian steel scrap market is currently characterized by sluggish demand and stable prices, according to market players consulted by SteelOrbis.

Currently, there is a fragile balance between supply and demand in Italy's scrap market. On one hand, demand from steel producers is weak amid low finished steel demand in the downstream market, while, on the other hand, traders have reduced their scrap collection activities, mainly due to the long winter and the bad weather which has continued to be seen in Europe.

This balance is extremely fragile and could be upset if steel mills do not receive enough orders. This could lead to declines in the market. Meanwhile, stoppages in steel production for national holidays on April 25 and May 1 may result in weakened demand for scrap. A revival of the construction sector will be necessary to ensure that at least current price levels are maintained.

Current scrap prices in Italy are at the following levels:

 

Quality

Price (€/mt)

E1 (HMS 2)

280-295 ($367-386/mt)

E40 (shredded)

300-310 ($393-406/mt)

E8 (busheling)

295-305 ($386-400/mt)

The prices are for delivery to customer, with VAT excluded.

€1 = $1.31


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