As predicted at the start of April, domestic scrap prices in Italy have settled at levels €5-10/mt lower compared to March price levels. Market sources described this decline as a "psychological retreat" after the high price levels reached in March. Scrap demand from local mills is still good, though supply is also high. This equilibrium could end towards the end of April, due to the national holiday on April 25 followed by the May 1 holiday, during which deliveries will come to a halt.
According to scrap traders, any ending of the demand-supply equilibrium should not have much effect on prices though, as Italian mills are well stocked with scrap, but at least it should put an end to their requests for price reductions. As always, the trend of the international scrap market will also influence the Italian scrap market, as CFR Turkey prices will likely dictate the expectations of Italian steel mills and their purchases.
Average spot prices in the local Italian scrap market are as follows:
|
Quality |
Average spot price (€/mt) |
|
Turnings (E5) |
260-265 ($320-326/mt) |
|
HMS (E1/E3) |
275-285 ($338-351/mt) |
|
Shredded scrap (E40) |
305-315 ($375-387/mt) |
|
Busheling (E8) |
305-310 ($375-381/mt) |
Prices include delivery and exclude VAT.
€1 = $1.23