Scrap prices expected to rise in Italy in October

Supply and demand are balanced in the Italian scrap market, but both are at low levels, according to local sources. Domestic scrap prices have been increasing in September, but the price rises have been significantly lower compared to those recorded in other European countries. According to sources, this was mainly due to the absence of a couple of local steelmakers, including Arvedi which still has to start its newly-replaced EAF. However, the steelmaker "is expected to re-enter the local scrap market in the first ten days of October, giving a boost to the market," said one source. Therefore, expectations are moderately bullish for local scrap prices in the coming month, excepting exceptional circumstances such as the imposition of new Covid-19 lockdown measures.

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

Prices include delivery and exclude VAT. Shredded scrap prices are compared to September 7, other grades are compared to a month ago.