Local Italian scrap prices mostly declined on the lower end

Domestic scrap prices in Italy have mostly softened on the lower end week on week, while in some situations prices are observed to remain stable with a downward movement tendency. “Plants in Italy are producing in an on/off mood, depending on hourly costs of electricity,” a source commented. Scrap contracts made at the beginning of September were almost closed at the same price levels of August but now scrap procurement departments are trying to reduce quotations, mainly Italian rebar producers. It is heard that some of the Italian rebar producers are planning to cut their scrap purchase prices in the coming week.

SteelOrbis observes that the decisions on how much scrap to buy or the price policies differ from mill to mill. Few Italian producers, tubes and special steel producers, are working with normal paces. According to an Italian source, “Difficulties are mainly linked to energy costs because after all, plants generally have decent orders apart from the rebar segment. Plants are trying to produce at good pace in September in order to avoid possible increase in energy costs in the last quarter.”

Depending on the material produced by the mills, scrap procurement prices differ by €20-30/mt. “Market is also influenced by the international mood, so if situation gets worse we'll see a worsening also in Italian domestic quotations,” a source adds.

Prices include delivery and exclude VAT.