Activity in the local Italian scrap market is usually quiet in July and this year is not an exception. According to market sources, local suppliers lowered their prices by €5-10/mt ($6-11/mt) at the beginning of the month and have kept their prices stable since then.
Some market players had been anticipating a slight price increase due to a possible increase in demand in late July because of last orders before the long summer holiday in Italy, but no such uptick has been observed. The political tensions in Turkey, the resulting weakening of the Turkish lira and the negative impact on scrap orders from Turkey may have an impact on international scrap prices and thereby also on Italian scrap prices.
In the local market, the short-term price trend will also depend on the duration of Italian mills' summer closures, which are expected to be three or four weeks long. SteelOrbis has learned that the time needed to obtain a renewal of the licenses to export rebar to Algeria, which will expire at the end of August, could influence the timing of Italian mills' summer closures.
Average spot prices in the local Italian scrap market are as follows:
Quality | Average spot price (€/mt) |
Turnings (E5) | 160-165 ($176-182/mt) |
HMS (E1/E3) | 175-185 ($193-204/mt) |
Shredded scrap (E40) | 195-200 ($215-220/mt) |
Busheling (E8) | 190-195 ($209-215/mt) |
Prices include delivery and exclude VAT.
€1 = $1.10