Scrap prices have increased significantly in the Italian market this month “as hadn’t happened in a long time,” according to local sources. Domestic scrap prices have increased by €75-80/mt on average compared to December 21. Several sources explained that, after ten days of almost daily increases, prices seem to have stabilized earlier this week as "now January contracts have almost all been closed.” The uptrend has been attributed to the imbalance between supply and demand. One source stated, "Back in November Italian steel mills attempted a further price cut, even if by a reduction of just €5/mt, despite the fact that the international market was already seeing a strong recovery.” In doing so, many local scrap suppliers held back their material. Towards the end of the year, mills were forced to return to the market, but at that time supply was further reduced due to seasonal factors and fiscal reasons. Similar movements were also recorded in the rest of Europe, although in Germany scrap prices were already higher than in Italy, a source underlined. As for the month of February, currently most sources believe in a continuation of the current trend even if with far lower price increases as supply and demand should become more balanced.
Average spot prices in the local Italian scrap market are as follows:
Quality |
Average spot price (€/mt) |
Turnings (E5) |
315-320 (+72.5) |
HMS (E1/E3) |
330-335 (+67.5) |
Shredded scrap (E40) |
365-375 (+85) |
Busheling (E8) |
365-375 (+80) |
Prices include delivery and exclude VAT.