According to SteelOrbis sources, so far in May Italian domestic scrap prices have remained firm at the same levels recorded in late April. Italian steel scrap prices are stilll at the following levels.
Quality |
Average price |
|
€/mt |
$/mt |
|
HMS I/II 80:20 |
310-320 |
400-413 |
Shredded scrap (E40) |
335-340 |
432-439 |
Busheling (E8) / (E8C) |
330-345 |
426-445 |
*Prices are for delivery to customer and exclude VAT
At present, scrap price negotiation activity is pretty intense in Italy as there is tight availability of local scrap due to low industrial activity. In this context, traders would like to increase their offers, but neverthless average quotations are standing still. Indeed, Italian long steel producers are starting to slow down their outputs because the domestic long steel market has hardly shown any improvement despite the opening of the traditional peak season for demand, thereby forcing producers to direct their products towards the export markets.
As regards availability, shredded scrap supply is particularly tight as car demolition activity in Italy is minimal. In this context, shredded scrap quotations can be equal to or even higher than busheling prices. Anyway, due to their tight profit margins, steelmakers are mostly focused on buying cheaper heavy melting scrap (HMS), quotations of which have strengthened in the current environment.
As previously forecast by Italian scrap consumers association Nuovo Campsider, local scrap prices are likely to follow a sideways trend. Moreover, some scrap traders go beyond the month of May and state that, except for minor fluctuations in the range of €5-10/mt ($6-13/mt), scrap prices in the Italian domestic market could follow a sideways trend until the end of summer. In fact, according to the latest predictions by the European Steel Association (EUROFER), apparent steel consumption in the European Union could stagnate until the last quarter of the year.
€1 = $ 1.29