Local Italian scrap market moves up further

The demand coming out of Turkey and the rising international scrap market have been reflected in the local Italian scrap market. Market players state that a €20-30/mt price increase has been observed in Italy since the beginning of March. Products such as flat steel and special steel are performing better, though no positive change has been observed in the long steel segment. As SteelOrbis reported late last week, the price drop for long products was continuing in southern Europe, especially in Italy, where everyone expects an increase that has not yet appeared, creating a climate of general confusion in the market. 

Another topic attracting attention is the Italian government’s support for energy prices, which will end at the end of the current month. The European Union has decided to cap energy prices at €180/mt for natural gas, but currently the natural gas price in Italy stands at €45/mt. “Therefore, the cap is not useful, but no official announcement has been made about the renewal of the mentioned tax discount yet,” an Italian source commented. 

For March, expectations are optimistic. Several sources said they believe that the local Italian scrap market is set to move up. According to one market player, “Since prices are moving up, producers, traders and even yards have halted, waiting for another upward movement.” 

As a result, SteelOrbis’ range of reference prices for local scrap in Italy have been revised as below: 

Prices include delivery and exclude VAT.