Local Italian scrap market stabilizes

Local scrap prices in Italy have remained stable over the past week, following declines during the past two weeks. Traders expect the market to remain at these levels until the first week of April, while mills are considering further declines for deliveries in late March and early April.

After falling by €20-25/mt in recent weeks, local scrap prices seem to have settled. In fact, the market has been quiet this week, with traders and steel mills waiting and observing developments in the domestic and international steel markets. Some traders have reported that scrap flows have declined further due to falling prices, and this may support scrap prices. A positive signal also seems to be coming from the international market, with the latest deal for HMS 80:20 from France closed at $381/mt CFR Turkey, up $3/mt. According to market participants, this could be indicative "if not of a rebound, at least of stability. Then we will see after the first week of April."

Steel mills, for their part, are very concerned about the sales of finished products, which do not seem to be improving, and are therefore considering further declines in scrap purchase prices for deliveries in late March and early April. Moreover, according to one market participant, some mills may slow down production in the coming weeks due to low orders and the Easter holidays.

Prices include delivery and exclude VAT.

Over the past two weeks, there has also been a drop in prices in the Spanish scrap market, following the trend abroad, but they have now stabilized. Traders do not expect further changes in quotations as deliveries will be slow with the Easter holidays approaching, but they do report renewed interest in imported material.

Prices include delivery and exclude VAT.