Local Italian scrap prices increase in some spot contracts

This week, local scrap prices in Italy have gained an average of €5/mt. However, the market does not present a homogeneous picture as some producers have conceded up to €15/mt more in spot contracts, while others have kept prices unchanged and are not willing to increase them. “It is not easy to understand how the market is moving right now. There are separate realities,” commented one source, adding, “There are those [producers] who have gone up and those who have no intention of doing so.”

“Some traders are expecting major increases and are refraining from sales,” commented one source, adding, “Supply is very limited, especially for new scrap because production is slow, but also for HMS.” On the other hand, some producers are not willing to increase scrap purchase prices. An official at one steel mill commented, “We kept the prices unchanged in November and will do the same in December. Moreover, we do not see an improvement in the finished steel market for the first quarter of 2025.” Furthermore, according to sources, producers have been buying quite a lot in the European market lately because it has had attractive prices and greater availability.

A decisive factor for price development in the near future will be the production shutdowns of steel mills. According to various sources, most mills will shut down in the first week of December due to the expected increase in energy costs. In addition, many steel mills have announced shutdowns of three to five weeks in over the Christmas holidays. However, it remains to be seen how long these stoppages will actually last.

Prices include delivery and exclude VAT.

In Spain, local scrap prices have fallen over the past seven days. Steel mills in the south of the country, whose purchase prices were at the upper end of the range, managed to achieve a drop of €10/mt, as anticipated last week, while those in the north achieved a decrease of €5/mt. However, traders expect prices to return to higher values soon as scrap demand seems to be improving.

Prices include delivery and exclude VAT.