Following the significant reductions observed in May, domestic scrap prices in Italy are also expected to continue to decrease during the month of June.
According to some operators consulted by SteelOrbis, there is a wide disparity in prices amid the ongoing downtrend. The same sources say that in some cases price decreases are not justified by reality. Some steel mills are in wait-and-see mode and are expecting significant decreases by the end of June and so they have reduced their purchase price quotations, while steel mills that cannot afford to wait are buying at the prices predicted by the Italian scrap consumers association Nuovo Campsider. Within a few days, however, according to same operators the situation should gain more clarity. Much will also depend on the closures steel mills will announce for the summer and on what happens in the US domestic and export scrap markets, as well as on how much support finished products will be able to provide for scrap prices.
Quality | Average price (€/mt) |
Turnings (E5) | 220-240 ($290-317/mt) |
HMS (E1-E3) | 240-260 ($317-343/mt) |
Shredded scrap (E40) | 285-290 ($376-383/mt) |
Busheling (E8) / (E8C) | 270-290 ($356-383/mt) |
*Prices are for delivery to customer and exclude VAT
A similar downtrend has also been observed in scrap prices in other countries. For instance, during the month of May local scrap prices declined by €11-15/mt ($15-20/mt) in Germany and by €14-19/mt ($18-25/mt) in France.
Besides, the decline in scrap import prices in Turkey has continued, with one of the latest deals to Turkey from Europe concluded for 30,000-35,000 mt of HMS I/II 75:25 at $315/mt CFR.
€1 = $1.32