Italian scrap consumers association Nuovo Campsider has said it expects that in the month of February scrap prices will indicate a €10-15/mt ($11-17/mt) decrease in the local Italian market. Such a decrease will be implemented in tranches of €5/mt ($5.7/mt), the first of which was announced on Monday, February 2.
Local sources agree with Nuovo Campsider by saying that prices are now expected to lose further ground, unless there is a strong rebound in international scrap prices or a sharp worsening of weather conditions - both of which seem very unlikely at the moment. At present, it is reasonable to think that the recent sharp decline in transaction prices from the US to Turkey will have an impact on prices in Italy and in the broader European market also. Meanwhile, decreasing prices of raw materials and finished steel have continued to negatively impact scrap prices in the global market.
According to market sources, the scrap supplies available in Italy are not abundant, but they are not scarce either, especially in relation to local consumption which lacks strength due to factors such as the absence of production by Piombino's steel complex, the halt of production by local steelmaker Stefana, the slow reprise of production by Riva, and in general the very low rates of capacity utilization.
Within the next week, it will become clear whether there will be price decreases in other European markets such as France and Germany. However, the sources interviewed by SteelOrbis tend to exclude the possibility of price declines in excess of €10/mt ($11/mt): "Such decreases would be illogical, because they would lead to an exaggerated rebound next month," said one operator.
€1 = $1.14