The upward pressure that has recently characterized the Italian scrap market seems to have eased slightly this week, with prices holding stable at high levels and with demand from steel producers slowing.
According to market players, the upward movement of scrap prices in Italy has lost momentum, with prices remaining stable at the high levels reached in mid-May. The restocking needs of mills have been fulfilled, and, in some cases, there has been a slight slowdown in production, especially of long products, with a consequent decline in demand for certain scrap grades.
Scrap traders acknowledge the positive price development, but at the same time they report that demand for scrap is down compared to last year. “[Scrap] sales prices have improved year on year, but we are receiving few orders. The manufacturing sector is struggling, so it generates less scrap, which drives up its value. But demand from mills is not brilliant,” one of them commented.
The first rumors regarding the market trend in June point to possible price stability, probably in view of the traditional summer shutdowns by mills. However, SteelOrbis believes it is still too early to outline a trend for the next month, as the market remains subject to numerous variables.
Therefore, scrap prices in Italy have remained stable compared to last week, with some upward adjustments for high-quality busheling (E8C), which is reported to have touched and exceeded €400/mt delivered to mill.
| Quality | Average spot price (€/mt) | Average spot price (€/mt) | Average spot price (€/mt) |
| Period | May 20 | May 14 | April 22 |
| Turnings (E5) | 300-310 | 300-310 | 285-300 |
| HMS (E1/E3) | 295-325 | 295-325 | 285-315 |
| Shredded (E40) | 340-345 | 340-345 | 325-345 |
| Busheling (E8) | 335-345 | 335-345 | 330-340 |
Prices include delivery and exclude VAT.
