The general impression in the Italian scrap market is that domestic scrap prices have hit bottom levels and will remain at these levels for the coming two months. In August, moreover, very few mills are expected to be active in purchasing scrap and in steel production. On the other hand, as already reported by SteelOrbis, Italian scrap consumers association Nuovo Campsider has stated that in its view Italian scrap prices will decline further in July, though at a slower rate compared to June.
Italian domestic scrap prices stand at the following levels as of July 5:
Quality |
Average price (€/mt) |
Average price ($/mt) |
Turnings (E5) |
190-200 |
243-256 |
HMS (E3) |
220-240 |
282-307 |
Shredded scrap (E40) |
250-265 |
328-340 |
Busheling (E8) |
250-260 |
320-333 |
€1= $1.28
*Prices are for delivery to customer and exclude VAT
Looking at the rest of Europe, scrap prices recorded in France and Germany are €5-10/mt ($6-13/mt) higher compared to prices in Italy, but according to sources interviewed by SteelOrbis this gap will disappear over the next two months.
At the moment, two variables are expected to influence the European and the Italian scrap market. With the start of Ramadan Turkish buyers are expected to leave the market and some market players think that scrap prices may thus go back to the levels of three-to-four weeks ago, while, secondly, a lot will depend on the closures of Italian steel producers, which this year could be longer than usual.