Local Italian scrap prices unchanged, only rare deals seen

The local scrap market in Italy has been characterized by an almost complete absence of negotiations this week, and most players have reported unchanged prices except for some upward movements made to adjust to the current scrap market prices.

Both scrap traders and mills agree that the current week and the next will be silent and stable, confirming the assumptions made by SteelOrbis for the month of April. There are only 20 working days in the current month and, given the great uncertainty in international markets and the lack of scrap availability in the national market, the entire supply chain prefers to take advantage of the holidays to take a break and see how events will evolve.

Some traders are already predicting that May will be full of negotiations and that scrap price increases will increase, while according to others production stoppages will contribute to a decline. Some others believe that it is too early to make predictions.

Several Italian producers have reported that they will stop production during the holidays in April (Easter, April 19-21 and Liberation Day, April 25-27), and most sources interviewed by SteelOrbis are planning to extend them for about ten days. Stoppages are being carried out due to maintenance works on the one hand and the continued lack of adequate orders for finished products on the other. However, it is worth mentioning that “timid optimism” is seen in the finished steel segment, also thanks to the slight drop in energy prices.

A discordant voice reported that he had sold a large batch of scrap to an Italian steel mill, amounting to around 12,000 mt, for delivery between April and May. This can be read in two ways:  in the first scenario the producer wants to avoid being short when production resumes in May, given the continued scarcity of scrap, while in the second scenario he wants to be protected against a possible further increase in scrap prices.

Scrap purchases from abroad are also at unchanged price levels compared to March. In short, the situation in the local scrap market in Italy can be described as tense but stable.

As for the announcement of the new tariffs from the United States, effective as of today, April 3, all goods from the European Union entering the United States will be subject to a 20 percent tariff. Sources interviewed, however, reported that it is still too early to talk about the possible consequences that this will have on international trade.

The purchase prices for all scrap grades in the local Italian market remain unchanged on week-on-week basis.

Prices include delivery and exclude VAT.

Prices in the local Spanish market have also remained unchanged week on week, but, thanks to a drop in energy prices, producers want to stock to restart after Holy Week with faster production rates. Consequently, they will have to grant some increases to traders who will deliver scrap before the holiday period.

Prices include delivery and exclude VAT.