Italian scrap prices decline but less than expected

This week, the Italian scrap market has been moving down compared to the previous levels recorded by SteelOrbis, in the wake of the declines in scrap purchase prices from other European countries in the May round of purchases. However, the decline is lower than initially expected, thanks to a partial recovery in scrap import prices in Turkey and to a slight recovery in finished steel demand - and therefore an increase in scrap demand - after the April holidays in Italy.

"This week's declines are fake," a major Italian scrap supplier commented during a speech at Made In Steel 2025 entitled "Scrap, availability and prices: the challenges of the future", adding that he believed that these decreases will not last. He said that, since scrap demand was lower due to the Easter holidays, now that the holidays are finished scrap demand will be back to normal levels as mills return to their usual production. However, he noted, scrap availability is not higher, which means that scrap prices will have to rise again, sooner or later.

According to another major Italian trader, "The worst is over, and I do not expect any further declines in the Italian scrap market".

If many were worried that prices would decrease by €30-50/mt after the end of April and early May holidays, now the extent of these declines is estimated at around €20-30/mt. However, officials at Italian steel mills do not seem to be of the same opinion. According to some, there is enough room for a further fall, but traders respond by avoiding sales. "I have no intention of selling at a loss," the representative of an Italian scrap dealer said, adding, "We buy at a price that does not allow us to resell our scrap to the steel mills at the level they want. At this point, I prefer to keep the material and wait."

The attitude of many Italian steel mills remains cautious. Scrap purchases are proceeding, a sign that steel demand is present, but only in small quantities. According to what mills say, however, scrap price levels remain high, and the cost of scrap must be added to that of energy, which "is 40 percent higher than the EU average and 70 percent higher than in France, the European country with the lowest cost of energy," the representative of an Italian steel mill stated.

New scrap price levels on the local Italian market are shown in the table below.

Prices include delivery and exclude VAT.