Another quiet week has passed in the Italian scrap market. Spot prices have remained largely unchanged, with reports of occasional downward adjustments by a few euros.
Scrap availability in the market remains high amid overall scarce demand, with the strongest demand coming from producers of special steel. "On our side, sales prices have remained unchanged for higher grade scrap. There have been small decreases for lower-quality grades, but by no more than €5/mt," an Italian scrap trader reported.
"We asked for reductions [in scrap prices] between €5/mt and €10/mt last week, and scrap suppliers agreed. They need to sell and they have to come to terms with the fact that mills’ margins are low," a source at an Italian producer said.
Meanwhile, electricity prices in Italy continue to be among the highest in Europe, standing at €107.04/MWh on September 25, compared to €62.78/MWh in France, €81.81/MWh in Germany, and €79.55/MWh in Spain. This gap is challenging for Italian steel producers, who are forced to reduce the cost of scrap so as not to suspend their steel production.
On their side, scrap traders cannot claim scarce availability of material - since at the moment scrap volumes are relatively high - nor can they count on a hike in rebar prices, which keep falling.
Consequently, considering the slight downward variations that have been accumulating during the month, scrap price levels in Italy are now standing at the levels in the table below. Higher busheling qualities, like E8C, have also been reported at higher prices, at €340-345/mt delivered to mill.
| Quality | Average spot price (€/mt) | Average spot price (€/mt) |
| Period | Sept 25 | Sept 18 |
| Turnings (E5) | 275-280 | 280-300 |
| HMS (E1/E3) | 270-295 | 280-300 |
| Shredded (E40) | 325-330 | 330-345 |
| Busheling (E8) | 315-325 | 320-335 |
Prices include delivery and exclude VAT.
