After increasing moderately following the end of the Christmas holidays, no significant change has been recorded in the local Italian scrap market during the past week, with only slight upward adjustments being made to domestic scrap prices. According to market sources, a few Italian steelmakers have begun to ask for €5/mt decreases on new monthly scrap purchase contracts. This move is attributed to the trend of international scrap prices - above all, scrap import prices in Turkey, and of billet prices - and is also due to a certain excess of local supply compared to demand, although demand is still quite strong in the Italian scrap market.
"When contracts for the current month are completed - explained one scrap supplier to SteelOrbis - we'll know if mills are only trying to "cool" the market or if we are actually going to face a price decrease". Most sources, though, still believe that scrap prices will not change significantly through the first quarter of this year thanks to good demand from mills.
Average spot prices in the local Italian scrap market are as follows:
|
Quality |
Average spot price (€/mt) |
|
Turnings (E5) |
260-270 ($320-332/mt) |
|
HMS (E1/E3) |
285-295 ($351-363/mt) |
|
Shredded scrap (E40) |
310-315 ($381-387/mt) |
|
Busheling (E8) |
305-315 ($375-387/mt) |
Prices include delivery and exclude VAT.
€1 = $1.23