In the last week, Italian ferrous scrap prices in the local market have seen a downward correction due to the uncertainty and unpredictability which continues to permeate the finished steel market, and also due to the suspension of production activities during the Easter break. Overall, market players consulted by SteelOrbis still indicate equilibrium between supply and demand, with price variations generally deriving from specific conditions relating to individual deals.
Moreover, many steel mills still have to resume full production activities after the holiday break, and another few days are necessary in order to observe more clarity in the market. In this regard, market players are waiting for the next meeting in early May of Nuovo Campsider, the association of Italian scrap consumers, which is expected to provide information about steel producers' orientation in the coming weeks.
Prices of heavy melting scrap (HMS) in Italy currently stand at €290-320/mt ($429-473/mt), down €5-15/mt ($7-22/mt) compared to a week ago, while busheling prices are at €350-370/mt ($518-547/mt) (with a peak of €380/mt ($562/mt) for high quality busheling), compared to €370-390/mt ($547-577/mt) in our previous report. Meanwhile, shredded scrap prices remain at €340-350/mt ($503-517/mt). All prices are for delivery to customer.
As for the international market, 10 days ago Turkish scrap buyers resumed their bookings, although with caution. Steel demand from the North African and Middle Eastern markets continues to be lackluster, and Turkish mills are buying raw materials only in line with their needs. However, the main obstacle for Italian (and European) scrap exports continues to be the strength of the euro against the dollar, a situation that tends to put suppliers on the continent out of the export market.
Returning to the Italian market, according to most market players, in May prices may fluctuate, although not significantly. In particular, a negative trend is expected for materials of lower quality, while busheling prices may recover slightly.