Italian domestic scrap prices have continued to rise over the past two weeks, mainly due to scarce supply combined with the desire of local steel mills to end the year with well-stocked scrap-yards. At the same time, scrap traders have been holding back sales for tax reasons. Scrap prices have increased by €10-25/mt compared to two weeks ago and, according to some sources, they could rise €10-20/mt higher in December. "This is in line with what is expected in the German market," one source said. "This month, I'm expecting increases for all scrap categories," commented one trader, adding that the supply of some materials is on the lower side, while "production stoppages should be short." Another source said that demand will remain strong until Christmas, with Italian steel mills "trying to attract the scarce flows of scrap by increasing their purchase prices." For now, the gap between the prices of higher-quality categories and lower-quality categories remains quite wide, with busheling surpassing July levels, and turnings and HMS being lower than this year's highs.
Average spot prices in the local Italian scrap market have mostly trended sideways compared to November 19 and are as follows:
|
Quality |
Average spot price (€/mt) |
Change (19 Nov) |
|
Turnings (E5) |
370-380 |
+15 |
|
HMS (E3) |
410-420 |
+25 |
|
Shredded scrap (E40) |
450-480 |
+10 |
|
Busheling (E8) |
510-530 |
+20 |
Prices include delivery and exclude VAT.