Italian local scrap market drops slightly in wake of international prices

As expected, local scrap prices in Italy fell slightly this week, affected by developments in international markets. However, market participants expect the declines to be limited, as scrap availability remains tight.

After remaining practically unchanged for six weeks, local scrap prices in Italy fell by an average of €5-10/mt this week. Steel mills, which had been trying to lower scrap purchase prices for some time, took advantage of the sharp international declines, in particular deep sea below $380/mt CFR Turkey, to achieve lower levels.

However, market participants believe that the price decrease will not be as pronounced as in overseas markets due to the limited availability of scrap, with some traders reporting difficulties in finding material to buy. Currently, the balance between supply and demand is ‘very thin’, according to sources, so 'mills will move cautiously so as not to risk not being able to get supplies’.

Prices include delivery and exclude VAT.

In the Spanish scrap market, local prices remained stable this week, as did import prices. However, market participants expect declines in both segments next week, in the wake of what is happening internationally.

Prices include delivery and exclude VAT.