Local Italian scrap prices down significantly

Scrap prices in the Italian market have recorded significant reductions, amounting on average to about €50/mt compared to the levels seen in the first half of August before the summer break. The exception is busheling, the prices of which have better resisted downward pressures, decreasing by just €15/mt. There are several reasons behind the requests for purchase price decreases by Italian steel producers. The main factors are the good levels of scrap stocks in their possession, the slowdown in sales of finished steel, especially rebar, the persistent weakness of the import scrap market in Turkey, and also the fact that German suppliers are selling at lower prices, affecting the Italian market.

"We are in a market that I would call quite speculative right now," said one local scrap trader. "It's a distorted market" echoed another trader, adding, "Mills are publishing purchase price lists that are frightening people, so that everyone is rushing to sell and the market remains under pressure." Most sources agreed that prices could rebound in the final months of the year, in the wake of the expected recovery of the international market and the "usual end-of-year issues related to stock management" (many suppliers will hold back their sales due to fiscal reasons, as they would have to pay higher taxes if their annual turnover exceeds a certain level).

Average spot prices in the local Italian scrap market are as follows:

Prices include delivery and exclude VAT.