According to market players, the Italian scrap market has this week begun to come under some upward pressure.
Although not all producers are inclined to buy large quantities of scrap, the upward pressure caused by general cost increases is also starting to be clear in traders' demands for higher prices.
"Those [mills] that need to buy in May will have to offer at least +€10/mt. HMS is now at €300/mt everywhere. The same [increase] applies to busheling. I think the increase is certain, as we [traders] had to raise prices a lot and mills will have to follow the market," an Italian scrap trader said.
Meanwhile, international scrap markets are also experiencing a slow but steady upward trend. As a result, while the main Italian producers can still count on very good stock levels for a few weeks, smaller producers are finding it more difficult to build up stocks. "They are the most nervous", a source at an Italian mill commented.
At the moment, however, SteelOrbis does not believe that the market is offering a clear enough picture to define new price levels with certainty. As a result, scrap price levels remain unchanged week on week.
| Quality | Average spot price (€/mt) | Average spot price (€/mt) |
| Period | April 30 | April 22 |
| Turnings (E5) | 285-300 | 285-300 |
| HMS (E1/E3) | 285-315 | 285-315 |
| Shredded (E40) | 325-345 | 325-345 |
| Busheling (E8) | 330-340 | 330-340 |
Prices include delivery and exclude VAT.
