After the €5-10/mt ($6-12/mt) price increases seen in the Italian domestic scrap market in the first part of December, in the rest of the month the market was very quiet with long production stoppages . Between the beginning of December and early January there were only small price adjustments that led essentially to a confirmation of the price levels reported last month.
The Italian scrap consumers association Nuovo Campsider recently said it foresees that the Italian scrap market will remain stable in January due to a good balance between supply and demand. Also, mills' scrap inventories have recovered due to the long production hiatus.
At present, scrap prices in the local Italian market are at the following levels:
Quality | Average price (€/mt) |
Turnings (E5) | 215-220 ($254-260/mt) |
HMS (E3) | 235-245 ($277-289/mt) |
Shredded scrap (E40) | 265-270 ($313-319/mt) |
Busheling (E8) | 260-270 ($307-319/mt) |
Prices include delivery and exclude VAT.
Meanwhile, it is important to point out that Brescia-based Italian steel group Stefana has been facing financial difficulties. In the first week of January, the Court of Brescia gave Stefana the period up to April 30 to file a pre-bankruptcy agreement proposal. Stefana's mills stopped producing last December and so there has been over 50,000 mt of scrap available monthly in the Italian domestic market for other scrap consumers. Stefana Group produces billets, bars, rebar, wire rod, merchant bar and sections at its various facilities.
€1 = $1.18