Recovery expected in local Italian scrap market

In Italy, as in the US, expectations of a recovery in scrap prices have strengthened on the basis of the price increases recorded in Turkey during February.

According to sources polled by SteelOrbis, it is likely that local scrap prices in Italy will rebound in March. Several traders have pointed out that, in addition to the "Turkey effect", scrap prices should move up in the Italian market on the back of a generalized shortage of material, mainly due to a drop in the generation of new scrap volumes in recent months.

On the other hand, the increase in prices could be strongly affected by the trend of the local finished products market. Some sources have reported that the already weak demand for finished products could be further hit by fears of possible blockages of deliveries due to the spread of the coronavirus. "Many, even if they need to order, prefer to wait or order smaller quantities," said one source. "Not because of bearish expectations, but due to fears of logistical problems," he added However, these problems have not been encountered to date.

As pointed out by Cremona-based steelmaker Arvedi Group, not only is production activity in all the companies of the Arvedi Group proceeding regularly, but there are no logistical inefficiencies either in the Italian or foreign territory, with access to the company by suppliers' vehicles taking place safely and regularly.

Average spot prices in the local Italian scrap market are as follows: 

Prices include delivery and exclude VAT. Price changes were calculated as compared to February 7.