Domestic scrap prices in Italy have decreased slightly over the past two weeks and may decline further in July. According to local market sources, scrap prices could weaken following the recent decreases in international scrap prices. Meanwhile, in the local Italian scrap market, the balance between supply and demand is very fragile. On one hand, scrap suppliers say that scrap availability is low, while on the other hand demand is weak as finished steel sales are low. For this reason, local steel producers aim at keeping their scrap inventories at low levels. For the coming month, sources expect local scrap prices to decrease, though not significantly. However, prices of higher-quality scrap are expected to decrease more compared to prices of other grades due to a recent slowdown in specialty steel sales.
Average spot prices in the local Italian scrap market are as follows:
|
Quality |
Average spot price (€/mt) |
|
Turnings (E5) |
220-230 ($251-262/mt) |
|
HMS (E1/E3) |
240-250 ($274-285/mt) |
|
Shredded scrap (E40) |
270-275 ($308-314/mt) |
|
Busheling (E8) |
265-275 ($302-314/mt) |
Prices include delivery and exclude VAT.
€1 = $1.14