“Demand is very strong, while supply is weak” - this is the mantra repeated by sources in the Italian scrap market. Domestic scrap prices recovered by €30-35/mt in November compared to the lowest levels that were recorded in October, and, according to market sources, they should increase further in December. "Local steel mills have a good workload until Christmas and therefore they need to buy scrap," commented one local scrap trader, adding, “Scrap availability is very low. In particular, the generations of new scrap has diminished a lot since industrial activities has decreased in past months." According to the same trader and other sources, the bullish phase should last at least until the end of this year. The trend has so far been supported by international scrap prices, with HMS I/II 80:20 prices reaching $272/mt CFR Turkey late last week.
Average spot prices in the local Italian scrap market are as follows:
|
Quality |
Average spot price (€/mt) |
Price change (€/mt) |
|
Shredded scrap (E40) |
240-250 |
+15 |
|
Busheling (E8) |
240-250 |
+15 |
|
HMS (E1/E3) |
225-235 |
+10 |
|
Turnings (E5) |
200-215 |
+12.5 |
Prices include delivery and exclude VAT. Price changes were calculated as compared to November 20.