Local Italian scrap market halts its upward trend, prices now stable

After rising by €25-45/mt over the past month, the upward trend of local Italian scrap prices seems to have come to a halt. In fact, deals closed in the first week of December indicate unchanged levels from last week.

The series of increases that characterized November came to an end this week and market players think local Italian scrap prices have reached their peak. "It seems that the market has accepted these prices and will continue to work at these levels in December,” a source commented. Despite the stable prices, the market has remained under pressure over the past week due to the gap between supply and demand. As another market source noted, "Steel mills have slowed down production because they are short of scrap, so demand is still good, but scrap is scarce and this should keep prices stable."

As anticipated, market participants expect prices to remain unchanged throughout December. With the Christmas holidays approaching, commercial activity is also expected to slow down. "There will be few deals in the coming weeks. The holidays are only a few days away and most mills should be okay with the loads purchased so far," one source stated.

As for January, the outlook is uncertain. As one market player commented, "It remains to be seen whether mills will be able to sustain such high costs. It all depends on whether or not demand for finished products will pick up and this is still unclear."

Prices include delivery and exclude VAT.