Local Italian scrap market starts to soften as holidays begin

Friday, 29 July 2022 17:39:46 (GMT+3)   |   Istanbul
       

As summer holidays start in the EU, local Italian market has started to soften on the lower end. “The recent rise was expected to be temporary anyways, this is not a surprise,” a source reported. Prices have declined by €15-20/mt over the past week. “The mills that are taking a break for technical maintenances or due to summer holidays are lowering their scrap procurement prices and finished steel demand is on the low side, but not all producers are following the same strategy,” a source commented, adding that the producers mentioned last week that received rebar demand are keeping their prices unchanged. Therefore, the scrap price range has widened week on week.

On the other hand, domestic scrap prices in Italy are expecting to move down during summer. Trading activities will slow down further in Italy during August and early September. “Some believe prices will increase after holidays, but I do not agree. Having moved up over the past months, energy cost in production has reached to €300/mt. This is not workable for all mills as demand remains on the low side, making an increase in steel prices hard” a source reported.

The negative factors mentioned by Italian sources are similar to other regions, high costs and energy prices, inflation, slow demand, pessimist expectations for Chinese growth and Russia’s ongoing invasion of Ukraine.

On the other hand, some players, mainly in the sellers’ segments, are stating that collection costs will not let them lower their prices by another €30/mt in line with mills’ requests. “We do not have the margins, and flow is very slow,” a source commented.

Currently, average spot prices in the local Italian scrap market are as shown in the table:

Quality

Average spot price (€/mt)
July 28

Average spot price (€/mt)
July 18

Turnings (E5)

240-280

270-280

HMS (E3)

270-320

300-320

Shredded scrap (E40)

325-350

350

Busheling (E8) 

300-340

320-340

Prices include delivery and exclude VAT.


Similar articles

Local Italian scrap market still sluggish, prices stable

29 Mar | Scrap & Raw Materials

Mexican domestic scrap prices

28 Mar | Scrap & Raw Materials

Carbon and stainless scrap prices in Taiwanese domestic market - week 13, 2024

28 Mar | Scrap & Raw Materials

Turkey’s deep sea scrap prices stabilize at $385-390/mt CFR

28 Mar | Scrap & Raw Materials

CISA: Coking coal purchase cost in China down 9.86% in Jan-Feb

28 Mar | Steel News

US scrap market still expecting sideways pricing in April

27 Mar | Scrap & Raw Materials

Ex-US deep sea scrap prices to Turkey increase, ex-EU prices relatively stable

27 Mar | Scrap & Raw Materials

Downtrend reverses in Pakistan’s import scrap segment

27 Mar | Scrap & Raw Materials

Average local Chinese scrap prices rise amid tight supply after previous decreases

27 Mar | Scrap & Raw Materials

Import scrap prices in India move up, but low bids prevent deals

27 Mar | Scrap & Raw Materials