In the Italian market, domestic scrap prices have fallen by €10-15/mt ($14-20/mt) since the last week of May. According to some operators surveyed by SteelOrbis, local steel producers would like to see scrap prices soften further and are unwilling to book orders from scrap suppliers for the moment. Others believe it is possible that in terms of prices the situation will remain unchanged until the end of the current month. Overall, there are no problems with availability of scrap. According to local traders, supply has certainly decreased, but it is commensurate with customers' needs. Following the production halts in April and May, Italian steel mills have other stoppages scheduled for June. Everything at the moment seems to indicate that the month of August this year will be characterized by long stoppages.
Scrap prices in the local Italian market are at the following levels:
Quality | Average price (€/mt) |
Turnings (E5) | 225-235 ($304-317/mt) |
HMS (E3) | 260 ($351/mt) |
Shredded scrap (E40) | 280-290 ($378-392/mt) |
Busheling (E8) / (E8C) | 275 / 285 ($371/385/mt) |
Prices are for delivery to customer and exclude 22 percent VAT
Meanwhile, with regard to scrap imports from Germany and France, there have been requests for decreases of €10/mt, but such requests have met with strong opposition. The position of Italian buyers appears to be well coordinated, but the resistance of foreign suppliers is also coordinated to ensure that prices remain unchanged. One market player told SteelOrbis that both sides will partially get what they want and so prices should decrease slightly.
At the same time, the international market seems extremely quiet. Turkish buyers' activities are very slow, with prices trending down but not by very significant margins. No major changes are expected in the coming months, and any changes would be the result of the usual fluctuations in demand and would not be caused by the trend of iron ore prices.
€1 = $1.35