No major changes have been observed in the Italian scrap market compared to the latest SteelOrbis report published on Monday, February 2.
Talk among market players has mainly been focused on the outlooks for the current month’s price trend, which are partially diverse. While no one expects scrap prices to fall in February, mills are pointing to a roll-over in prices, while traders believe that the upward pressure on prices has not yet ended and they expect further upticks of between €5/mt and €10/mt.
"CBAM costs are also pushing scrap prices up," an Italian scrap trader said. "Foundries are struggling because of CBAM. If pig iron and HBI increase so does scrap, but I don't know how sustainable this situation will be for the finished steel market," another local trader added.
On the other hand, steel producers are quite determined not to agree to further increases in February, and Italian mills would even try to seek a price reduction of €5/mt. Most sources interviewed by SteelOrbis have in fact stated that they have good scrap coverage and they are not in a hurry to buy. One source, however, has noted a certain "haste to sell, both from Italian and foreign suppliers. This attitude is typical when the market is about to change, so I honestly don't know what to expect."
Scrap prices in the Italian market have been reported as follows:
| Quality | Average spot price (€/mt) | Average spot price (€/mt) | Average spot price (€/mt) |
| Period | February 6 | January 30 | December 18 |
| Turnings (E5) | 285-300 | 285-300 | 265-290 |
| HMS (E1/E3) | 280-320 | 295-335 | 270-305 |
| Shredded (E40) | 320-345 | 320-345 | 300-325 |
| Busheling (E8) | 330-340 | 330-340 | 300-330 |
Prices include delivery and exclude VAT.
In addition, €370-375/mt have been reported for E8C scrap, with higher levels up to €310/mt for turning (E5) and €350-355/mt busheling (E8), but these are exceptional cases that do not affect the average reference ranges. Finally, it should be noted that, within HMS, E1 scrap prices stand at €280-300/mt, whereas E3 scrap prices stand at €305-320/mt, with even higher peaks. Prices include delivery and exclude VAT.