In the last three weeks scrap prices in the Italian market have changed direction compared to the steady rising trend registered in March and in the first two weeks of April. Trading volumes are also lower, since most steelmakers have already bought the quantities of scrap they need to maintain current production. With regard to the level of supply, different opinions are heard from market operators: some say there is enough material available, while others think that scrap supply is still somewhat on the short side.
In the meantime, the domestic finished steel sector remains sluggish, although it seems that orders have slightly increased in number. Nevertheless, demand for rebar continues to be very poor, in line with the weakness in construction.
On the other hand, the scrap export situation is quite good. Demand from Germany has grown, as well as demand from North Africa and Eastern Europe. Turkish steelmakers seem to have halted their buying activity, since they have stocked enough material in recent weeks.
In the last few days, scrap quotations in Italy have decreased by €10-20/mt: HMS stands now at €290-300/mt, while shredded and busheling are in the range of €310-320/mt and €325-340/mt respectively. All prices are ex-yard.
In conclusion, market operators believe scrap prices in Italy may show a further decrease in the near future. In the medium-to-long term, much depends on how the finished steel market will perform.