In the Italian market, scrap prices have decreased by €25-35/mt ($32-44/mt) in the past month due to factors such as the weakness in the international scrap markets (influenced by iron ore price decreases too), an accident that forced Italian steel producer Arvedi to halt production for two weeks and, in general, the lower scrap demand from domestic steel mills - also influenced by problems at Italian steel producers including Verona-based Riva Acciaio, Piombino-based Lucchini, Acciai Speciali Terni and, last but not least, Taranto-based Ilva.
Currently, the priority of Italian scrap traders is to ensure sales of materials in order to obtain liquidity with which to pay their own suppliers.
Meanwhile, according to participants of the BIR Autumn Convention in Paris, the strong presence of the Chinese in the international steel markets is very worrying, along with the long-standing problem of overcapacity.
Sources interviewed by SteelOrbis expect further declines in Italian domestic scrap prices during November. While it is too early to determine the margin of such declines, they should not exceed €20/mt ($25/mt)during the given month given the already-low price levels.
Also, according to reports from market players in Italy, it is certain that in November many local steel mills will continue to purchase materials on spot basis instead of via contracts, giving rise to some fluctuations in prices.
At present, scrap prices in the local Italian market are at the following levels:
Quality | Average price (€/mt) |
Turnings (E5) | 215-220 ($271-277/mt) |
HMS (E3) | 230-250 ($290-315/mt) |
Shredded scrap (E40) | 260 ($328/mt) |
Busheling (E8) | 250-260 ($315-328/mt) |
Prices include delivery and exclude VAT.
€1 = $1.26