Scrap prices decline in Italian domestic market

Scrap prices have decreased further in the local Italian market after having suffered a setback in the second half of July. Compared to July 20, local Italian scrap prices have declined by €10-25/mt depending on the quality of the material. "Recent weeks have been quiet in terms of activities. Scrap demand has weakened as usual as the summer hiatus is approaching, and Italian mills, especially rebar producers, have asked for price reductions," a scrap trader explained.

The manager of a domestic rebar producer summed up the situation saying, "In Turkey, scrap prices dropped significantly in the past month. In August, the Italian scrap market will be at a standstill due to the interruption of both steelmaking and scrap collection, while activities will continue in the remaining European countries, albeit at a slower pace. We are hearing that scrap prices may fall by €20-30/mt in northern Europe." According to the same source, if at the end of August prices in northern Europe are significantly lower than those recorded in Italy, "the Italian market would have to adjust downwards: otherwise the foreign market would have to adjust in an upward direction." As for supply, the producer said, "This month I believe that more or less all steelmakers in Europe will have enough scrap stocks."

Scrap prices in the Italian scrap market are at the following levels:

Prices include delivery and exclude VAT.