Mixed signals from local Italian scrap market

While the end of summer holiday is approaching in Italy, some plants are still out of the market. They are evaluating the energy prices which will inevitably affect the restarting process. Some Italian producers decided to restart production with a slower pace, with only one furnace instead of all. An Italian source said “Merchants think and hope for a spike in prices but sincerely, situation is not so good in terms of costs and demand. So we will wait to see what is really happening next week.”

Some Italian mills started to make price inquiries for scrap but the price levels are similar to the ones before the holiday. For example, they are €30-50/mt lower than Germany. Generally steel plants are cautious against the backdrop of energy and gas prices becoming a huge factor on decisions. “Sourcing material [scrap] from Northern Europe is still difficult due to the logistics issue,” a source commented. Whether local Italian scrap market will follow the rest of Europe and move up or fail to keep the pace will be seen when all market players return to the market. According to market players “Everything is delayed after August 29, first days of September will be determinative.”

SteelOrbis understands that the trend of the local Italian scrap market will depend on mills’ decision about their capacity utilization rates, hence the weekly prices are left stable for now. 

Prices include delivery and exclude VAT.