In the May-June period this year, scrap prices in the Italian market have dropped down significantly.
As of June 21, local scrap prices in Italy are at the following levels:
Quality |
Average price (€/mt) |
Average price ($/mt) |
Turnings (E5) |
190-200 |
249-262 |
HMS (E1-E3) |
230-235 |
301-308 |
Shredded scrap (E40) |
260-265 |
340-347 |
Busheling (E8) / (E8C) |
255-260/265-270 |
334-340/347-354 |
*Prices are for delivery to customer and exclude VAT
According to market players consulted by SteelOrbis, activity is slow in the Italian scrap market and scrap producers are finding it difficult to collect orders due to the sharp drop in outputs of steel mills, most of which are facing serious financial difficulties and are not able to draw up long-term plans. According to the latest figures from the Italian steel producers association Federacciai, Italy's long steel output fell by 10.2 percent in the first quarter and by 16.4 percent in March, both year on year. Meanwhile, Italian crude steel output decreased by 15.6 percent in the January-May period and by 11.2 percent in May, both year on year.
In the meantime, scrap collection activity in Italy is poor: new arrivals have decreased and stock levels are low. In these circumstances, sources are unsure whether there is still margin for a price drop or whether scrap quotations have already hit the bottom. At the same time, activity in the Turkish scrap market has indicated a rebound ahead of Ramadan.
In July and August, activity will almost completely come to a standstill, due to Ramadan in the Middle East and North Africa and the summer holidays in Europe. Overall, the biggest concern for Italian scrap suppliers and for the Italian steel market in general remains the collection of payments.
€1 = $1.31