Domestic scrap prices in Italy move up as expected

As expected, domestic prices have increased in Italy so far this month, though by a lower margin than expected. "The market was already trending up in late February, with some increases for a few contracts," said a local trader, adding that such rises were due to both the uptrend of import scrap prices in Turkey and the scarce availability in Italy due to lower industrial production. The price increases that have been recorded this month compared to February levels have been limited due to the strong uncertainty linked to the coronavirus emergency, and partially due to the end of the price uptrend in Turkey.

Local demand is good, but "mills are cautious and are not pushing very much to get material," underlined a market source, adding that "this period of uncertainty is having an impact on finished steel sales too", such as rebar, the price of which has decreased this week.

Meanwhile, difficulties are being recorded in getting scrap from the import market (i.e., from France and Germany). "Some drivers have refused to make deliveries to Italy due to the coronavirus", explained a source, "therefore we do not know if the ongoing contracts will be delivered". This circumstance, leading to a further drop in the availability of scrap, could push domestic scrap traders to ask for further price increases in the coming weeks.

Average spot prices in the local Italian scrap market are as follows: 

Prices include delivery and exclude VAT. Price changes were calculated as compared to February 27.