Local Italian scrap market sluggish ahead of summer holidays

The Italian scrap market has been sluggish this week, with several producers achieving reductions of around €10/mt in scrap prices. The overall levels, however, remain unchanged.

"I’ve closed [scrap] sales in Italy at minus €/10-15mt for July contracts. Someone tried to ask for a €20/mt reduction, but no one [seller] gave in," a scrap seller stated. "Asking for a reduction of €20/mt could be counterproductive - another source commented - even if it is true that rebar prices have fallen again." Scrap demand by Italian mills remains weak, while scrap supply is still limited.

Producers are already focused on the summer stoppages and there has been little interest in purchasing. "I’m done [buying scrap]. Production is stopping from the end of next week until the beginning of September," said a source from an Italian mill. Similarly, other producers have announced production stoppages, roughly from July 20 to August 20, depending on the individual case.

While some traders expect a hike in scrap prices in September, others remain cautious. "The market conditions were similar last year, when we saw a new drop in September after summer closures. I wouldn't hope too much," a source said.

Although several buyers have purchased scrap at lower levels of €10-15/mt, the overall scrap price range in the Italian market remains unchanged, as downward variations are bound to either individual producers, small volumes or spot contracts.

Prices include delivery and exclude VAT.