Local Italian scrap market starts to settle

Over the past week, activities in the Italian scrap market have gradually started to resume. Earlier this week, the Italian steel market was quiet, “We are waiting for the Italian government’s decision regarding help on gas prices. When mills start producing steel again, there will be the right price for scrap,” a source at one mill commented. Last year, Italy bought 40 percent of its gas from Russia, and so the issue is being monitored closely by domestic industries.

It is observed that the significantly higher gas prices are causing some mills to reconsider whether they will resume production at full strength or whether they will postpone any decision until they see clearer sentiment. Also, Italy is getting ready for the general elections due to be held on September 25. A source reported that, until steel production reaches a certain level, the scrap market will remain on standby.

However, already, it is observed that domestic scrap prices are settling within a narrower range. The upper ends of the prices shared in the table below represent the levels for smaller tonnages. SteelOrbis observes that the collection prices at EU-based export yards are also falling, giving a bit of a support for lower local prices in the region itself. This may help Italian scrap buyers to lower their scrap procurement prices in the coming weeks.

Prices include delivery and exclude VAT.