In line with the view expressed by Italian scrap consumers association Nuovo Campsider, in early July scrap prices have been trending down in the Italian scrap market. Scrap traders consulted by SteelOrbis state that the decline in Italian scrap prices has amounted to €5-10 ($6-12/mt) in the first week of July.
Quality |
Average price |
|
06 Jul (€/mt) |
29 Jun (€/mt) |
|
HMS |
270-290 ($332-357/mt) |
280-300 ($344-381/mt) |
Shredded scrap (E40) |
300-310 ($369-381/mt) |
320-330 ($394-406/mt) |
Busheling (E8) / (E8C) |
295-305/310 ($363-375/381/mt) |
310-315/320 ($381-387/394/mt) |
*Prices are for delivery to customer and exclude VAT
The trend of Italian domestic scrap prices will remain closely connected with prices in other European markets. Italian steelmakers have targeted a reduction of €20mt ($25/mt) in their monthly purchase prices for ex-Germany and ex-France materials, in order to reflect the decline in prices of Italian scrap supplies. Currently, it is not clear whether they will achieve their goal, since scrap prices in the EU markets had declined sharply in May and June, and the summer break in the main European markets will not be as long as in Italy. For this reason, local demand in central European countries is expected to be steadier than in Italy, slowing down any likely dip in prices.
Back in Italy, the summer break plays a major role in the current market environment. According to rumors, the most important domestic steelmakers with electric arc furnaces will shut down their smelting operations for at least three weeks. Indeed, Italian scrap demand is declining and is poised to fall further as August approaches.
Meanwhile, as steel producers have only four to five weeks to sign contracts and receive scrap supplies by the beginning of August, the market is currently characterized by intense bargaining activity between scrap traders and steelmakers.
€1 = $ 1.23