Italian scrap market sees fresh price rises, ex-Germany purchases attract attention

As anticipated by SteelOrbis last week, some players in the Italian scrap market have also concluded purchases at higher prices this week, with increases of about €10-15/mt and, in some cases, up to €20/mt.

Local suppliers continue to report difficulties in sourcing material, confirming the upward pressure on prices in the market. Mills’ demand remains at a good level, as production continues at full pace, especially among long steel producers.

Some mills have also reported a good level of scrap supply from abroad, especially from Germany and France, with purchases concluded at about €10/mt higher than last month, against price increase requests of up to €15/mt. The upward push in these markets may be linked to struggles in collecting material ahead of the slowdown associated with the Ascension holiday (May 14-17) and Pentecost (May 24-25).

As for German origin material, significant price increase requests have emerged, partly due to the competition in the domestic market, since German mills have resumed production at a good pace. “They were coming from a period of recession, whereas now they are recovering. Demand for finished steel - and consequently for scrap - is increasing,” a source said.

According to initial expectations, the Italian scrap market may also see a slight upward adjustment in June, though some sources believe the rising trend may cool down between late this month and next month.

Despite the increases observed, average price levels remain within the ranges mentioned by SteelOrbis in the previous report. E1 prices stand in a range of €295-305/mt delivered, while E3 prices are at €310-325/mt delivered or even higher for special grades. Higher-grade shredded scrap (E40) has been heard at up to €375/mt delivered, while for higher-grade busheling (E8C) prices stand in the range of €380-390/mt delivered.

Prices include delivery and exclude VAT.