Italian domestic scrap prices start to increase

As predicted in late October, scrap prices have reversed their trend in early November as they have begun to increase on the back of better demand and lower supply. According to market sources, many traders are already holding back sales for tax reasons. "This has been an extraordinary year for everyone. Profits will be high, meaning the share of taxes will be high too. Many people will prefer to transfer a part of their profits to next year. Therefore, I think that the last two months of this year will be characterized by scarce scrap supply," one supplier commented.

Another source stated, "Not many big contracts have been signed yet, though people have been expecting price increases. What is certain is that there is a shortage of material, but the extent of the price increase in the next two months will depend on mills' desire to buy. Some mills will be eager to buy, while others will not, and this will depend on the trend of the finished steel markets."

Finally, other market players commented that the ongoing decrease of import scrap prices in Turkey may have an impact on Italian scrap prices, although a limited one. “Usually, prices in Turkey weigh more in a situation of uncertainty or slow activity here, which is not the case, as the imbalance between supply and demand will be the driver of the market,” one source explained.

Average spot prices in the local Italian scrap market have mostly trended sideways compared to October 13 and are as follows:

Prices include delivery and exclude VAT.