Local Italian scrap prices still stable, demand at low levels

Local scrap prices in Italy have not changed in the past week. According to sources, “the market is static” and demand from steel mills is low. The latter are in fact facing high energy costs that lead some mills to stop production during the most expensive hours. “We are not working at full capacity and it seems that energy prices will continue to be high even in February,” the manager of one steel mill commented. In addition, the market also seems to be very static in terms of finished steel products: price increases are only partially materializing and downstream demand is limited, according to contacts.

Sources are now predicting a stable or slightly rising market for February, but are waiting to see what the actual developments in the foreign scrap markets will be. The latest indications are stable domestic scrap prices for Germany and France and an increase of $4.5/mt for deep sea scrap from Europe to Turkey.

Prices include delivery and exclude VAT.

The local scrap market in Spain has remained stable this week due to sluggish demand from steel mills. However, market participants report a €5/mt increase in import scrap prices, due to higher CFR Turkey prices for deep sea scrap. Traders' expectations for February are therefore for a stable or slightly rising local market to match import prices.

Prices include delivery and exclude VAT.