Scrap prices down significantly in Italian market

Scrap prices in Italy have fallen by €80/mt on average in the past two weeks, after declining by around €20/mt in mid-April. The main causes are the slowdown in demand and the downtrend of the international market. There is now a "fragile balance" in the market, according to sources. "All players are on standby mode," said a local scrap trader, adding, "Mills are not quoting [scrap purchasing prices]. They prefer postponing any answers to the next day and at the same time they are buying some material at bargain prices, because they always find someone who needs to sell. I have not made any offers since the middle of last week. I am waiting for bids, even though by doing so I am selling very small volumes." According to the same source, domestic mills "are trying to understand what German players will do. Turkish buyers have yet to resume buying too.”

Several sources have underlined that the gap between high quality and lower quality categories has progressively decreased in recent weeks. Moreover, someone pointed out that "these are indicative prices, since orders are scarce."

Currently, average spot prices in the local Italian scrap market are as shown in the table:

Prices include delivery and exclude VAT.