The local scrap market in Italy has been relatively stable this week, though most market players are already talking about possible increases coming next month in March. The overall situation remains unchanged: scrap is scarce and expensive, and steel mills are unable to reflect increases in their finished steel product prices. All that said, scrap prices in the local Italian market have remained mostly stable, with only a slight €5/mt increase recorded for E3.
“The tug-of-war [between traders and steel mills] continues,” commented one source, adding, “But the increases are mostly due to the upheavals that have occurred at an international level, starting with the United States.” As previously reported by SteelOrbis, scrap prices in the US are set to rise by at least $40/mt in the March buy-cycle.
According to some Italian traders, local scrap prices could see increases of €5-10/mt in March. The reason lies in the lack of material in the domestic market on the one side, and on the other in a steadier pace of construction activities during the warm season, which will increase demand for finished steel products, consequently causing steel mills to require more scrap.
Other sources, on the contrary, believe that these rises - especially for new scrap - are solely due to the fact that Italy cannot generate enough scrap domestically. On the one hand, manufacturing companies have suffered a sharp drop in the pace of their operations, and, on the other, imports are not that convenient compared to domestic purchases. It is also worth mentioning that the lack of scrap availability is not only happening in Italy, but also in other European countries that are going through a phase of economic crisis, such as Germany.
| Quality | Average spot price (€/mt) February 27 |
Average spot price (€/mt) February 20 |
Average spot price (€/mt) January 24 |
| Turnings (E5) | 295-310 | 295-310 | 275-295 |
| HMS (E3) | 315-330 | 310-325 | 295-315 |
| Shredded scrap (E40) | 330-350 | 330-350 | 320-340 |
| Busheling (E8) | 330-345 | 330-345 | 320-335 |
Prices include delivery and exclude VAT.
A similar situation has been observed in the Spanish market, where scrap prices have risen about €10/mt in the local market and are expected to rise another €10/mt in March contracts.
| Quality | Average spot price (€/mt) February 27 |
Average spot price (€/mt) February 13 |
| Turnings (E5) | - | 295-300 |
| Old steel scrap (E1) | 315-320 | 315-320 |
| HMS (E3) | 335-340 | 330-335 |
| Shredded scrap (E40) | 345-350 | 340-345 |
Prices include delivery and exclude VAT.