Against all expectations, the current week is proving to be a quiet one for the local scrap market in Italy. At the end of the recent Made In Steel event in Milan, the mood in the Italian steel market seemed to have improved slightly, but this was not enough either to stimulate orders for finished steel or demand for scrap from mills, whose production is still slow.
"The latest declines have slowed the pace down," an Italian scrap supplier commented, adding, "We have probably reached an impasse: [for mills] buying at upper levels would mean casting doubt on the previous declines, but, without an upward movement, suppliers are refusing to deliver." The situation is in a stalemate and it seems that all players are waiting for a sign to restart trading activities at better prices. According to some sources, this recovery - so far estimated at €10-15/mt - could begin towards the end of May.
The international scrap market is in fact stabilizing, thanks to the easing of tensions in the tariff war between the United States and China and the rebound in Turkey’s import scrap prices. A source also reported that a pool of four Italian mills has purchased two ship cargoes from Belgium thanks to better purchase conditions, but this information was not confirmed at the time of publication.
The representatives of some Italian mills confirm their reduced willingness to buy at the moment, as the production stoppages of April allowed them to maintain high scrap stocks and therefore avoid an immediate restocking on the resumption of activities. They admit, however, that they will soon need to buy again, thus leading to a new rise in local scrap prices. "The market is at a standstill in Italy. We need a signal of recovery and I am convinced that it will arrive soon," the representative of an Italian steel mill commented. The other key factor, however, remains the scarcity of scrap in the local market and the struggle to finding sufficient sales volumes, which could contribute to rising prices.
Currently, scrap prices in the local Italian market are as follows:
| Quality | Average spot price (€/mt) May 15 |
Average spot price (€/mt) May 08 |
Average spot price (€/mt) April 16 |
| Turnings (E5) | 270-285 | 300-310 | 310-320 |
| HMS (E3) | 270-300 | 315-330 | 325-340 |
| Shredded (E40) | 320-350 | 315-335 | 325-345 |
| Busheling (E8) | 310-325 | 335-345 | 345-355 |
Prices include delivery and exclude VAT.
Sources also reported that the local Spanish scrap market is stabilizing, while imports have recorded slight increases. E1 stands at €300-305/mt, while E40 stands at about €330/mt. The prices indicated include delivery and exclude VAT.