Local Italian scrap prices adjusted down further, uncertain outlook for January

Local scrap prices in Italy have undergone further downward corrections in the past week even though trading activity has been very slow as the Christmas break approaches. “The market is almost at a standstill. The last deliveries are being made for contracts already in place,” commented one market participant, adding, “The purchase prices of steel mills have dropped a few more euros because producers do not need to buy or want to take advantage of the last deliveries”.

Sources have very different opinions on the forecast for January: “Ideas are unclear,” according to one trader. The intention of steel mills remains to lower prices further since with the new year their scrap yards will be full and production low, while some traders expect a recovery. “Some mills will restart already on January 2, most on January 7, and others on the 13th. We will have to wait until the middle of the month to see what direction prices will take,” one contact stated. “It certainly won't be a significant month. In any case, I don't expect big price movements,” he added.

Prices include delivery and exclude VAT.