In the Italian scrap market, the rise in prices seen in the first half of September - thanks to the restocking activities of steelmakers - lasted only for a couple of weeks, then being replaced by a declining trend. Scrap quotations in Italy have now dropped by an average of €40/mt, regressing to the levels registered in July.
The current market price situation is quite volatile, and this represents a concern for market players, who wish for a more stable market. Some operators forecast that the downtrend will continue in the near future, while others expect prices to indicate a slight increase by the end of October.
Mills have relatively high scrap inventories at the moment, and scrap traders currently have sufficient stocks of materials in their yards. Import tonnages are at good levels, mainly from neighboring countries (i.e., Germany, Austria and Switzerland), where prices are also declining. As regards the global markets, US scrap suppliers are decreasing their offers to Turkish buyers, since demand from the Turkish mills has shown a weaker recovery than had been expected.
Overall, the Italian scrap market is thought likely to remain unstable up to the end of the year, in line with the weakness of the finished steel market (principally rebar).