Local Italian scrap market sees quiet week, doubts about production stoppages

The local scrap market in Italy seems to have found some sort of balance during the past week. Local scrap purchase prices have remained mostly stable and inflows have been regular, although the market remains characterized by a widespread shortage of material.

Scrap demand has remained steady. “We have returned to the rhythms preceding the boom in recent years. Energy costs remain high, but, despite the complaints, we are still working," a source commented. The overall situation has improved compared to the end of 2024, when the local scrap market in Italy was basically at a standstill.

The main doubt among operators is whether steel mills will decide to carry out shutdowns for the Easter period, since so far there are only rumors about the matter. One producer confirmed that they will stop production between April 19 and May 4, while another reported that they will only stop on non-working days.

Production stoppages, in fact, could regularize the market and ease the tension before the beginning of summer, when mills will likely see an improvement in demand for finished products, which, for now, remains poor for longs and only slightly better for flats.

Although most operators expect April to be a stable month, both in view of the holidays and of the impossibility of further increases in scrap prices, some believe that there is still room for adjustments of €5-10/mt. A major Italian producer said he believes that the market has peaked and that, if there are some movements in the coming weeks, they will be downward.

Scrap imports from Germany are currently absent, as negotiations are closed for the current month, but a source reported some delays in scrap deliveries due to the closures of some warehouses. On top of that, logistics will have to deal with traffic bans during the holiday periods, which will make deliveries even more difficult.

In this overall context, local scrap prices in Italy remain unchanged week on week.

Prices include delivery and exclude VAT.

In the local scrap market in Spain, mills seem to have improved their production forecasts thanks to a drop in energy costs, and scrap prices have seen increases of €5-10/mt compared to the beginning of the month for HMS and shredded scrap, while prices of old steel scrap have fallen by €5-10/mt over the same period. Also worth mentioning are the prices of busheling (E8), which stand at around €365/mt.

Prices include delivery and exclude VAT.