The Italian scrap market is still under pressure in a context of tight supplies and low demand for finished steel. The latter makes it difficult for mills to increase their prices in order to balance the upward movement of scrap quotations.
Based on the extended holiday break previously announced by steelmakers, in the last few weeks local traders had been selling as much scrap as they could, so that they would not carry over high inventories into the New Year. However, the traders now seem to be surprised by the decisions of some mills to reduce the duration of their holiday closure.
Currently, in the Italian market, local offers for demolition scrap stand at €200-210/mt, shredded scrap prices are at around €210-215/mt, while busheling scrap quotations are at the level of €220-230/mt. All prices are delivered.
Overall, the Italian scrap market is expected to trend sideways in the near future, with occasional upward movements soon slowed down by sluggish purchase activity.