January was a month of stability for the Italian steel scrap market. After local steel producers and scrap dealers returned from their Christmas-New Year holiday (making a very late return because of scheduled stoppages) scrap prices in the country were virtually unchanged compared to December levels. Currently, domestic scrap prices are at the following levels:
Quality | Average price (€/mt) |
Turnings (E5) | 255-260 ($349-356/mt) |
HMS (E3) | 290-300 ($397-411/mt) |
Shredded scrap (E40) | 310-315 ($425-432/mt) |
Busheling (E8) / (E8C) | 315/320 ($432/438/mt) |
*Prices are for delivery to customer and exclude VAT
"New year, old problems," is the mantra repeated by scrap dealers in Italy polled by SteelOrbis. The dealers speak of a continuously fluctuating market amid difficulties in receiving payments. Currently, however, there seems to be a substantial balance between supply and demand. Such a balance could be jeopardized by the trend of the finished steel markets, by news from abroad (especially the decrease in import scrap prices in Turkey) and by weather conditions. In the absence of difficulties related to transportation, there might be declines of €5-10/mt ($7-14/mt) next month. Some market players, though, think that local scrap prices could also remain unchanged. The market situation should become clearer by the first week of February.
€1 = $1.37