The Italian scrap market has continued to show a positive trend in quotations, maintaining the movement which started at the beginning of June. Mills' buying activity is still good, as steelmakers seek to replenish their scrap stocks in order to maintain their output levels with ease during July. Moreover, steel producers also want to increase their scrap inventories so that they will not have to worry too much about market changes when resuming normal production activities in September after the summer holidays. In this context, scrap prices in Italy have risen again, by an average of €5-15/mt, in the last week, depending on the grade.
In the Italian domestic scrap market, hot melting scrap (HMS) now stands in the price range of €310-340/mt ($440-483/mt) (up to €350/mt ($497/mt) for best quality HMS), while shredded scrap prices stand at €355-365/mt and busheling prices are at €370-380/mt ($525-540/mt) (€390/mt ($554/mt) for high grade material). All prices are for delivery to customer.
On the import side, Italian steelmakers have been buying a good amount of scrap in the recent period. This material have been imported mainly from central and northern Europe. Scrap offers from German suppliers have risen, in line with the uptrend observed in their local market as well as that seen in the Italian domestic market.
According to market operators consulted by SteelOrbis, scrap prices in the Italian domestic market are expected to rise further in the near future, though the increase margin is expected to be low.