The Italian scrap market is currently on a rising trend with increases of 20 percent seen in prices since the end of July, SteelOrbis has learned.
Local mills in Italy have resumed their buying activity and, considering the low availability of scrap, are having to pay higher prices in order to ensure their production.
Scrap stockists are reacting in different ways to the current situation: some are hoping for a continuation of the present trend and so are not selling material for the time being; others, however, have decided to take advantage of the current momentum and are selling scrap at quite good profit margins.
In the Italian market, shredded scrap prices are currently in the range of €200-210/mt, busheling stands at €220-230/mt, while demolition scrap costs €190-210/mt. These prices, which vary according to quality, are for delivery to mills.
At present, it appears impossible to forecast the future trend of Italy's scrap market due to the number of variables involved. The most important factor is whether longs and semis prices maintain their levels over the next two or three weeks, especially given the decline seen in Chinese prices. In addition, it still remains to be seen how much the improvement in steel demand in Italy is due to actual consumption and how much is due to restocking activity.