The Italian scrap market seems to have entered a new phase, with prices in the last ten days becoming firmer or even increasing by five percent in the case of high grade materials (i.e., busheling). Many market players say that the uptrend may continue in November, for HMS and shredded scrap too.
On the demand side, local mills are still maintaining a wait-and-see stance, in particular long steel producers. Business for rebar is very weak, and the upcoming winter season does not allow much room for optimism in the construction sector.
Currently, local Italian prices for HMS are in the range of €260-270/mt, shredded stands at €280-290/mt, while busheling is around €300-315/mt. Prices are delivered to customer.
Generally speaking, scrap inventories are quite tight at the moment, and this may also help quotations to strengthen.
With regard to imports, the strength of the euro against the US dollar has encouraged scrap buyers in Italy to focus on foreign supplies, while for the same reason Italian scrap sellers are now experiencing greater difficulties in terms of scrap exports.