Local Italian scrap prices stable amid market weakness

The Italian scrap market has been quite sluggish this week. Although scrap supply is relatively decent thanks to the price increases in the last two weeks, scrap demand from Italian mills is not brilliant and prices have gradually stabilized as expected.

Some producers have made a few "final adjustments", but price levels have remained substantially unchanged. According to market players, this stability will continue at least until the end of the month, since the situation in the Italian finished steel products market has stabilized at the same time.

Nonetheless, uncertainty remains. "The market is lacking direction," an Italian scrap supplier commented. “It is based on personal, specific needs. There is a lot of uncertainty, and it is really difficult to plan. Producers who need to buy can maybe add €5/mt, producers who don't might lower [purchase] prices by the same amount," he added.

Another topic that characterized this week's discussions in the Italian scrap market was the announcement of closures by some Italian mills, as early as July. Forecasts of rising energy costs during July and scrap price levels are in fact leading some producers to plan production stoppages earlier than the traditional interruptions in August.

Demand in the finished steel segments is certainly not helping them, as they are still dealing with an uncertain market, steel oversupply, high raw material costs, decarbonization expenses and numerous other factors.

As anticipated, some slight upward corrections in scrap prices were made at the end of last week, but from then until the time of publications no other changes have been recorded. Hence, the market can be considered stable. It should be noted that, although the price range of shredded scrap is very wide, this is due to its numerous subcategories.

Prices include delivery and exclude VAT.