Scrap prices in Italy increase significantly

Scrap prices have increased strongly in the Italian market this month, on the back of the uptrend of international scrap prices and due to the shortage of material locally. "From early October to date, import scrap prices have increased by more than $160/mt CFR," one source underlined. "So far, price increases were significantly lower in Italy and other EU countries, so everyone believes that scrap prices will rise further in January," the same source added. Other factors supporting further rises may be the revocation of scrap import duties in China and the positive sentiment on the back of Covid-19 vaccine hopes, other sources said. However, a decline in global scrap prices is expected around late January, although sources exclude a strong slump.

In the Italian market, domestic scrap prices have increased by €25-30/mt compared to December 4. The lack of scrap volumes is currently due to several reasons: suppliers are holding back their sales both due to expected price rises in the coming weeks and due to fiscal reasons, as they will have to pay higher taxes if their annual turnover exceeds a certain level. Moreover, scrap collection is more difficult due to seasonal factors.

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

Prices include delivery and exclude VAT.