The first 10 days of September were characterized by moderate increases in scrap prices in the local Italian market, while prices were stable in the middle third of the month and have decreased in the final third of the month. Currently, according to sources interviewed by SteelOrbis, there is a balance between scrap flows and prices, and the market is waiting for further developments in relation to the situation of domestic steel producer Riva Acciaio. In fact, it is the suspension of activity of Riva group’s plants which has affected local scrap prices in the final third of the month, causing a regression from the peak levels reached in the first days of the month. According to some operators, the impact is essentially psychological - 50 percent of scrap supplies which were originally destined for Riva Acciaio, the same sources state, has in fact been delivered to other steel mills, while the remaining material is being held back in the hope that the situation relating to Riva is resolved.
Italy’s domestic scrap prices as of September 26 are as follows:
Quality Average price (€/mt) Average price ($/mt) Turnings (E5) 240 324 HMS (E3) 270-275 364- 371 Shredded scrap (E40) 290-295 391- 398 Busheling (E8) 295 398
*Prices are for delivery to customer and exclude VAT
At present, there is not much certainty with regard to the likely trend of local scrap prices in Italy in the first 10 days of October. Some sources suggest that there will be further price decreases of around €10/mt ($13/mt), while others tend to exclude price declines, claiming that scrap material that has already been stored in the market has been paid for at higher prices. Local operators state that for the moment they are focused on making ends meet on a daily basis.
€1=$1.35