Scrap demand in Italy impacted by surging energy costs

Sentiment has remained bearish in the Italian scrap market this month. According to local sources, prices of some scrap categories are holding up better than others, but a tug-of-war is still going on between steel mills and traders. After the sharp decreases that were recorded in September, the market seems to have found some balance in the past ten days, partly due to the trend reversal that was observed globally, in particular in Turkey. However, domestic scrap demand remains low since several steel mills are reducing their production due to the sharp rise in the cost of energy. For this reason, sources do not rule out further slight price decreases in the coming period, especially for lower qualities. As November approaches, however, the situation should move towards a stabilization, especially if the increasing trend in import scrap prices in Turkey does not turn out to be just "a flash in the pan".
Average spot prices in the local Italian scrap market are as follows:

Prices include delivery and exclude VAT.