Italian scrap market at a standstill amid coronavirus emergency

The coronavirus emergency has brought the Italian scrap market to a standstill. Several steel mills have suspended production activities in the past week, including Alfa Acciai, Industrie Riunite Odolesi, Ferriera Valsabbia, Duferdofin-Nucor, Feralpi, and Ferrosider, among others. Together with steel production, scrap delieveries have also stopped.

"To date I possess some material, but I do not intend to move it as I do not want to endanger my collaborators," commented one local scrap trader. The same source said that, given the current situation, "it is inappropriate to talk about prices and also make forecasts", and added that they believe that "we are only at the beginning of the storm".

One thing that is certain is the fact is that the shortage of scrap, which was already registered before the outbreak of the epidemic, is destined to worsen in the domestic market. "Even before the adoption of the decrees concerning the containment of the epidemic, several foreign suppliers did not deliver," said another source. At present, some steel producers are still working with the stocks they have, but sooner or later they may be forced to stop as well. The Italian steel market could therefore find itself experiencing an "early August". The hope, of course, is that the hiatus will last as short as possible, but most sources currently say they are not optimistic about the situation.

Average spot prices in the local Italian scrap market are as follows: 

Prices include delivery and exclude VAT. Price changes were calculated as compared to March 17.