Italian scrap market at a standstill amid coronavirus impact

The coronavirus emergency is causing great concern among Italian scrap dealers, especially after two steelmakers in northern Italy announced the temporary stoppage of their activities this week. Other local steelmakers may follow, as the Italian government has asked businesses and factories to limit activities as much as possible, encouraging staff to take holidays or to work from home. It is almost superfluous to talk about prices in this situation: "There is no real market," commented a local trader, adding that it is not even known if orders booked today will be delivered as customers may shut down at any time. These words have been echoed by a local steelmaker, "It is incorrect to speak of a market nowadays, and what worries us the most is that we do not know when this situation will end." According to the same source, even those steel producers who have decided not to suspend their operations could be forced to do so if the emergency worsens. As reported last week, scrap prices rose slightly in the Italian market this month, based on both the trend recorded in import scrap prices in Turkey during February and the scarce availability of material.

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 6.