Domestic scrap prices have decreased by €5-10/mt in the Italian market in the past two weeks, amid the imbalance between demand and supply. Local steelmakers have been trying to obtain decreases in scrap prices recently as they have slowed down their purchases considering that one big buyer is carrying out works to replace its EAF, and also because further stoppages are expected during the traditional summer period. Only two local steel groups will be working in August according to sources, while others will halt production activities for a maximum of 40 days.
Market sources are uncertain about what the raw material price trend will be after August, with some of them underlining that scrap-producing companies are still working at about 70 percent of their capacity and will be stocking their material in the coming weeks. As a result, there should be no lack of scrap in September, unless local steelmakers increase their activities significantly.
Average spot prices in the local Italian scrap market are as follows:
|
Quality |
Average spot price (€/mt) |
Price Change (€/mt) |
|
Shredded scrap (E40) |
225 – 240 |
-7.5 |
|
Busheling (E8) |
230 - 240 |
-10 |
|
HMS (E1/E3) |
200 - 225 |
-5 |
|
Turnings (E5) |
180 - 190 |
-10 |
Prices include delivery and exclude VAT. Price changes were calculated as compared to July 9.