The Italian scrap market has remained quiet in the past week. Steel producers have remained in wait-and-see mode, and they are not willing to buy scrap for the moment.
Scrap supply in the national Italian market seems to have improved, but it remains to be seen whether this availability that can be observed through full warehouses on both suppliers’ and producers’ side is only due to lower demand rather than an actual increase in scrap supply.
For the moment, producers remain in wait-and-see mode, as post-holiday production has recently resumed and the accumulated stocks are sufficient to ensure its continuity. The few agreements that have materialized on the market are mainly long-term, with unchanged prices as preferred choice. In some cases, a decline of between €5-7/mt has been registered, while in other cases – especially for long-term suppliers or higher scrap quality purchases – slight upward corrections have also been granted.
However, “now it makes no sense to talk about prices. The current scenario is distorted, both on the suppliers’ and customers’ side. Honestly, I expected such a situation when I returned from holidays. We’ll see the real trend of this season towards the end of the month," an Italian scrap trader said.
On their side, producers have noticed a good availability to sell from suppliers, but "at the moment we do not need much," a source at an Italian steel mill said. The same source then reported that lately they have been also buying scrap from Eastern Europe, where they have found excellent quality material. Another source, also at an Italian producer, said that "declines are a signal from producers: we want to warn the market that we have no intention to increase scrap prices".
Meanwhile, issues such as CBAM, international conflicts and Chinese overcapacity continue to be a topic of discussion among market players.
Scrap prices in Italy this week have been largely reported at unchanged levels, as shown in the table below:
| Quality | Average spot price (€/mt) | Average spot price (€/mt) |
| Period | Sep 12 | Sep 03 |
| Turnings (E5) | 280-300 | 280-300 |
| HMS (E1/E3) | 280-300 | 280-300 |
| Shredded (E40) | 330-345 | 330-345 |
| Busheling (E8) | 320-335 | 320-335 |
Prices include delivery and exclude VAT.
In the local scrap market in Spain, on the other hand, prices are lower than in Italy and the market expects further declines in the coming weeks.
| Quality | Average spot price (€/mt) | Average spot price (€/mt) |
| Period | Sep 12 | Aug 08 |
| Turnings (E5) | 260 | - |
| Old steel scrap (E1) | 270 | 285 |
| Heavy old steel scrap (E3) | 295 | 300-305 |
| Shredded (E40) | 300-305 | 315 |
Prices include delivery and exclude VAT.