Italian scrap prices stable, but upward pressure remains

A rather tense and uneven scenario has emerged in the Italian scrap market in the past week. Although mills’ purchase prices have remained mostly unchanged, scrap traders are convinced that the upward pressure on prices has not yet been exhausted.

Scrap traders, in fact, have been reporting lively demand, but at the same time steel producers are remaining cautious. "The landscape is shaped by individual needs," an Italian scrap trader commented. "Some [mills] have bought good volumes, some have not. Some [mills] have increased [scrap purchase prices], and some have not." "There is no clear trend. Prices are not declining, but there have been some roll-overs. Unlike Germany, scrap prices in Italy have already increased a lot in January,” another scrap trader commented. The current trend of rebar prices, however, seems to support traders’ ideas, as mills’ requests for higher prices have recently materialized in the Italian longs market.

On the steel producers’ side, sources are maintaining a cautious attitude, and they have largely confirmed unchanged levels in scrap prices. "Everyone is aware that we will not be able to accept the prices they [suppliers] are asking for," a source at a major Italian mill commented. "It is cheaper to import from abroad rather than to buy in Italy," he concluded.

Overall, scrap prices in Italy have been reported at the following levels:

Prices include delivery and exclude VAT.

In addition, €345-350/mt levels have been reported for busheling (E8), but these are exceptional cases that do not affect the average reference ranges. Finally, it should be noted that, within HMS, E1 scrap prices stand at €280-300/mt, whereas E3 scrap prices stand at €305-320/mt, unchanged week on week. Prices include delivery and exclude VAT.