The Italian scrap market has gained clarity in the past week. Thanks to the rebound in prices recorded at the end of April, domestic scrap supply has improved slightly, while the market seems to have achieved greater equilibrium in the past few days. "When there was in fact only one buyer in the market - i.e., Arvedi Group - the raw material prices had dropped to very low levels," said one local scrap trader, adding, "Now that we are facing a real market, prices have returned closer to the levels seen in March." Various sources pointed out that scrap flows had significantly declined during April, while higher volumes are circulating now, also thanks to the easing of the national lockdown measures and the resumption of production activities. "Supply remains low, but at least now it appears more commensurate with demand," pointed out another source. As for the coming weeks, two scenarios are suggested. Some people expect further price increases due to a strengthening of demand, while others fear a new reversal of the price trend if Italian steel mills have difficulties in selling their finished products.
Average spot prices in the local Italian scrap market are as follows:
|
Quality |
Average spot price (€/mt) |
Price Change (€/mt) |
|
Shredded scrap (E40) |
230-250 |
+2.5 |
|
Busheling (E8) |
240-250 |
+7.5 |
|
HMS (E1/E3) |
220-235 |
-5 |
|
Turnings (E5) |
200-215 |
+5 |
Prices include delivery and exclude VAT. Price changes were calculated as compared to April 30.