Italian scrap prices on the rise in early June

In May, the Italian ferrous scrap market witnessed a substantial equilibrium in terms of supply and demand, with overall flows of traded material at good levels. Concerning price trends, locally there was a slight downward correction of €5-10/mt ($7-15/mt) during May, while import offers from Germany and France remained virtually unchanged. In May, 60,000 mt of scrap arrived at Italian ports.
 
At the beginning of June, the Italian scrap market seems to be back on an uptrend, albeit a limited one. However, to gain a clearer picture of the situation and to gather more reliable information about the new price levels, we will have to wait another few days.
 
In the opinions of market insiders polled by SteelOrbis, for the time being local steelmakers hold relatively low stocks, enough for 10-15 days of production; hence, their demand for raw materials remains decent. On the other hand, there are no particular problems in terms of scrap collection and availability in the market.
 
As regards the developments in the international market, Turkish steel producers - after the continuous scrap booking activity recorded in recent weeks - seem to have temporarily halted their bookings, held back by the slowdown in finished steel demand and the current finished steel price trend. Demand from Asian mills for scrap is also low, due to the retreat in prices of iron ore and weak demand for finished steel in the region. In China, in particular, steel producers must also deal with restrictive government policies, aimed at curbing energy consumption and bringing inflation under control.