Local Italian scrap market moves up

As negotiations between scrap suppliers and mills in Italy continue, their price ideas but all point to an upward trend. “The price in Italy is also increasing, but the market will form towards the end of the month,” an Italian source commented.

Another source stated, “While Italian merchants are asking for a €30-40/mt increase on average, steel plants are trying instead only for a €20-30/mt rise as compared to December.” SteelOrbis hears that suppliers are keeping their offers firm.

While Italian sources report that Germany is seeking an increase of €20-30/mt due to the difference expected from the hike in transportation fees, a German supplier reported that the water levels of rivers are on the good side, but that the main problem is the availability of scrap. German producers are also increasing their scrap procurement prices, resulting in stronger competition with Italian mills. A German supplier has reported that their sale to a Belgium-based export yard last week for E3 grade scrap was closed at €357/mt DAP, while on January 5 a similar sale was done at €360/mt DAP.

Also, the local Italian scrap market is monitoring the movement of Turkey’s import scrap segment closely. Several Italian and German players stated that their local mills are offering stronger competition for Turkish mills as compared to a month ago.

As a result, SteelOrbis’ range of reference prices for local scrap prices in Italy have revised as below, with the upper end of prices including the offers shared by the sellers:

Prices include delivery and exclude VAT.