Domestic scrap prices in Italy have remained stable in the past week, having increased in early September, though the recent decrease in import scrap prices in Turkey has also created uncertainty in the Italian market.
Some sources said that domestic scrap prices in Italy may trend downwards by the end of the current month. In fact, this week one Italian steelmaker has decreased its scrap purchase prices by €5/mt, but this is seen as a simple "realignment" from excessively high levels to normal market price levels. One market source explained that in the past few months a lot of local scrap traders, expecting price increases, were unwilling to sell, and this stance has now led to an increase in scrap availability in the market. These additional supplies may cause slight decreases in prices in the coming weeks. On the bright side, scrap demand from Italian steel producers is still strong and has gained strength in view of the recent release of import licenses in Algeria. Furthermore, Italian producers are not willing to reduce their scrap purchase prices by significant margins because they fear that this could affect their finished steel sale prices.
Average spot prices in the local Italian scrap market are as follows:
|
Quality |
Average spot price (€/mt) |
|
Turnings (E5) |
245-255 ($294-306/mt) |
|
HMS (E1/E3) |
265-275 ($318-330/mt) |
|
Shredded scrap (E40) |
295-305 ($354-366/mt) |
|
Busheling (E8) |
290-300 ($348-360/mt) |
Prices include delivery and exclude VAT.
€1 = $1.20