Scrap prices down in Italy for February contracts

As reported one week ago, local scrap prices have halted their uptrend in the Italian market as domestic mills, after securing enough supplies, started to ask for price reductions on February contracts. Such reductions were accepted since a large number of smaller scrap traders, who had been holding back their material on the back of expectations of further price rises, have been willing to sell. According to most sources, however, the reversal in the price trend is going to be temporary. "Large scrap suppliers do not have supplies, while sooner or later smaller traders are going to run out of their material as well. I also believe that when Turkish mills come back to the market, the international scrap market will rebound and raw material prices in the Italian market will follow too," one local trader commented. Another source agreed, adding that Chinese players are also expected to be more present in the market and will have an impact globally when their New Year holiday is over. In the short term, though, local mills, especially rebar producers, may try to exert further downward pressure on scrap prices.

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

Prices include delivery and exclude VAT.