In the Italian scrap market, domestic prices have increased by €5/mt on average compared to the levels recorded in August. However, they could increase further in the coming weeks, according to local sources. "The market has upward expectations due to higher finished steel and pig iron prices, and also due to the bullish trend of the international scrap market in the past few weeks. However, so far we have had just some crumbs," said one scrap supplier. "Several mills in the past weeks procured some material as they fear that prices could increase," the same source stated, adding that demand is still good.
Another source underlined that local steelmaker Arvedi is still affecting the scrap market negatively as it has halted steel melting since around mid-July in order to replace its EAF with a new one. However, market sources have told SteelOrbis that the new EAF will be started on Wednesday or later this week. Most local scrap suppliers believe that taking the abovementioned factors into account, scrap prices in the domestic market could increase by a further €20/mt before the end of September.
Average spot prices in the local Italian scrap market are as follows:
|
Quality |
Average spot price (€/mt) |
Price change (€/mt) |
|
Shredded scrap (E40) |
225 - 240 |
+7.5 |
|
Busheling (E8) |
235 - 245 |
0 |
|
HMS (E1/E3) |
200 - 225 |
+5 |
|
Turnings (E5) |
185 - 195 |
+5 |
Prices include delivery and exclude VAT. Shredded scrap prices are compared to August 24, other grades are compared to a month ago.