Local Italian scrap prices stable after holidays, uncertain outlook for January

Local scrap prices in Italy have remained stable compared to three weeks ago and, according to sources, trading activity is still very slow since there has been only a small number of working days since the holidays. In fact, while some producers returned to work on January 7, others will not do so before January 13. "There isn't much movement in the market, but those who have made inquiries have seen stable prices," one trader commented.

Market participants are uncertain about what the price trend will be in January. Some contacts speak of declines, others of stability, and some say increases are a possibility. According to one source, however, significant increases in the short term are to be excluded given the quietness of the finished market and the falling prices of deep sea scrap in Turkey. He added, "It will perhaps be possible to see an increase in prices towards the end of the month or at the beginning of February." Furthermore, he went on to note, "The declines in finished steel in China could be reflected in the finished steel market in Italy, making it difficult to increase raw material price levels".

Prices include delivery and exclude VAT.