As expected, domestic scrap prices in Italy have been increasing in the past two weeks on the back of increasing raw material prices globally, good demand and a lack of scrap. “Amid the shortage of material, finished product prices such as rebar prices have increased significantly recently, while scrap prices in Germany have risen by €40/mt this month,” said a scrap supplier, adding that prices have not increased by that amount in the Italian market yet, but they will have to eventually. Price increases of €7.5-15/mt have been recorded compared to two weeks ago. As scrap prices are already expected to trend up in January too, some local scrap suppliers are thinking of halting their sales. At the same time, as usually happens around this time of the year, lots of small local suppliers have begun holding back their sales due to fiscal reasons, as they will have to pay higher taxes if their annual turnover exceeds a certain level. This will contribute to a lack of material in the market and therefore to further price increases, according to sources.
Average spot prices in the local Italian scrap market are as follows:
Quality |
Average spot price (€/mt) |
Turnings (E5) |
215-225 |
HMS (E1/E3) |
230-250 |
Shredded scrap (E40) |
250-260 |
Busheling (E8) |
250-270 |
Prices include delivery and exclude VAT.