Scrap price uptrend halts in Italian market

Domestic scrap prices have trended sideways in Italy in the past week, although local mills are currently pushing for price reductions, according to market sources. Such requests have come both due to the decrease in international scrap prices and the lack of long steel sales (especially of rebar) in the past few weeks. Lots of scrap traders sold their material this month as local prices increased by €75-80/mt month on month, while several smaller traders held back their material on the back of expectations of further price increases. While supply has remained low in general, local sources believe these small traders will be willing to sell their material at lower prices in the coming period. In the past few days, mills have been asking for €10/mt reductions in scrap prices, but these have yet to be accepted in new contracts. According to one trader, scrap prices are expected to decrease between the end of January and early February, while they may resume their uptrend in late February. What is certain for now, according to sources, is that the uptrend in the local market has temporarily come to an end.

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

Prices include delivery and exclude VAT.