At the beginning of 2012, local Italian scrap prices have trended upwards, as usually happens upon the return from the New Year holiday. Average quotations have increased by €10-20/mt, reaching the levels listed below:
HMS |
€320-340/mt |
Shredded scrap |
€350-365/mt |
Busheling scrap |
€365-370/mt |
Prices are excluding VAT, with delivery costs included
Despite the increase in offer levels, the Italian scrap market has still to take shape as rebar producers have only now begun to restart their furnaces after a couple of weeks of absence. Their buying policy will be heavily influenced by finished product price trends, which are linked to their competitiveness in the export markets and also to the US dollar/euro exchange rate. Local Italian scrap traders are hoping that the exchange rate remains under 1.3, so that finished product export offers do not lose their strength, thus bringing Italian steelmakers to pay the desired price for local scrap.
As the market has just reopened after the holidays, the steel mills' scrap stocks will have to be readjusted and different demand levels could produce different price trends for the various scrap qualities. According to the scrap traders consulted by SteelOrbis, they do not exactly know which categories are needed the most by their customers. SteelOrbis sources state that for the next month the outlook is very foggy. Some believe that a further price increase will be seen, while some others are sceptical about the prospects for the market, also because an increase in the strength of the euro could bring more steel scrap into Italy from eastern Europe and the CIS, pushing local quotations into a downtrend.