Scrap import crisis in Italy

Scrap import crisis in Italy

The authorities are not allowing the discharge of processed scrap, with the new implementations at Venice port since the beginning of October, as it is now considered as waste material. The steel mills which need to build up inventories in the eve of winter season, are under tough conditions with the implementations of new regulation that affects the scrap prices to increase. After the similar crisis experienced last year, this is the second time that such situation occurs by the Italian authorities. The mini mills which depend on scrap import in Italy, have been under threat as a result of this situation. As a temporary solution, the mills have started to discharge their scrap at other ports like Monfalcone and Ravenna and use the railway to transfer it to their facilities. However, it is not seen as a practical solution due to increased costs. The negotiations held with the port authorities have remained without a conclusion, through the attempt of Italian steel industry federation Federacciai. A Venice judge is appointed to clarify this issue and release a written decree on the final result of the matter. The common belief in the İtalian steel industry is that the Basel Convention is misinterpreted and has led to such outcome. The subject is expected to be clarified in this week.