Local Italian scrap market moves sideways over past fortnight

Domestic scrap prices in Italy have remained stable over the past two weeks. The lack of finished steel demand in the country is preventing any softening, while demand and prices are on the low side. “Scrap flow to yards or scrap demand received from steel plants has decreased,” one Italian source said.

Expectations for November are mostly negative in the local Italian scrap market. If finished steel demand does not recover, a price correction may also be seen in the scrap segment.

As SteelOrbis mentioned in its European long steel market report published today, there is some confusion in the southern European longs market, where some producers continue with minimum price offers, while others have decided to suspend sales due to major cost increases and weak demand. The ongoing sales of some mills results in demand for scrap, supporting the scrap market for now. However, the slowing down of production may have a negative impact on prices in the coming period. One Italian source summarized the situation, stating, “During October, we saw some contrasting movements, with some plants paying €5-10/mt more for some quantities and others paying €5-20/mt less because of production cuts and stoppages.”

As a result, SteelOrbis’ range of reference prices for local scrap prices in Italy is as below:

Prices include delivery and exclude VAT.