After the drop registered in prices at the start of the current year, by the end of January local scrap prices in Italy slipped by another €15/mt ($17/mt). During the first week of February, the market registered another drop of €/5mt ($6/mt), taking prices back to the levels seen in November last year. Weak demand and the high availability resulting from temperate winter weather conditions have created expectations for another drop in prices in the coming weeks.
Average spot prices in the local Italian scrap market are as follows:
Quality |
Average spot price (€/mt) |
Turnings (E5) |
120-130 ($136-147/mt) |
HMS (E1/E3) |
130-140 ($147-158/mt) |
Shredded scrap (E40) |
170-175 ($192-198/mt) |
Busheling (E8) |
165-175 ($186-198/mt) |
Prices include delivery and exclude VAT.
In the meantime, in the European market there are tight negotiations between suppliers from France and Germany and the Italian mills, which are seeking €15-20/mt ($17-23/mt) discounts on most contracts that have not been signed yet. Market sources say that the suppliers will be forced to accept the buyers' requests for discounts.
€1 = $1.13