The local scrap market in Italy has this week reported strong uncertainty about the consequences of the war in the Middle East, translating as a substantial slowdown in trade and overall scrap price stagnation.
The scrap purchase price trend has remained mostly stable or has fluctuated in a narrow range, very much dictated by mills’ individual needs. According to reports, most steel producers have purchased small scrap quantities at relatively unchanged prices, just down €5/mt or higher by €5/mt for the most requested scrap grades such as E8 and E8C.
However, the trend remains stable overall and market players are maintaining a wait-and-see stance, trying to understand what the actual consequences of the war in the Middle East will be. In the meantime, gas, energy and transport prices are rising significantly, causing great concern and uncertainty in the market.
"The situation is worrying and unstable," a source on the scrap supply side commented. "By the way, almost all steel mills in Italy are quite well supplied [with scrap], and this somehow gives them control in the current situation," he added.
As for purchases from import markets, a couple of Italian steel mills have reported having purchased some scrap volumes at lower prices than in February, especially from Germany, as confirmed by a German trader as well.
Overall, scrap prices in the local market in Italy have not changed significantly, and they continue to stand at last week’s levels.
| Quality | Average spot price (€/mt) | Average spot price (€/mt) | Average spot price (€/mt) |
| Period | March 05 | February 26 | February 6 |
| Turnings (E5) | 285-300 | 285-300 | 285-300 |
| HMS (E1/E3) | 280-320 | 280-320 | 280-320 |
| Shredded (E40) | 320-345 | 320-345 | 320-345 |
| Busheling (E8) | 330-340 | 330-340 | 330-340 |
Prices include delivery and exclude VAT.
As for Spain, market players have reported stable demand and a failed attempt to decrease prices by steel mills. Currently, scrap purchase prices in the local scrap market in Spain stand at around €305/mt delivered to mill for E1 and €330-340/mt delivered to mill for E40, up by €5/mt and €5-15/mt, respectively, compared to the previous levels reported.
