Scrap prices trend up in Italy, but slower than in other EU countries

Domestic scrap prices have increased significantly in the Italian market since early March, reflecting the consequences of the Russia-Ukraine conflict and surging energy costs across Europe. However, local mills have succeeded in slowing down the uptrend a bit by temporarily halting or reducing their production, several sources told SteelOrbis. “Prices have increased more significantly in Turkey and also in EU markets such as France and Germany. The difference between scrap prices in Italy and in other European countries is €30-60/mt,” one trader commented. Another source underlined that Italian mills can afford to wait for the moment, as they have enough scrap suppliers, “but they will have to go back purchasing in the coming period, especially if it’s true that they have received plenty of orders as it seems, and also considering that finished steel prices have increased outstandingly.” In this situation, “We are living from hand to mouth,” a local scrap trader said, adding that, while scrap supply is “regular”, demand is more erratic and difficult to assess. What is certain is that local scrap suppliers have very different price ideas compared to mills and, although scrap prices are going up, this has happened slowly so far. Meanwhile, truck companies are raising their transportation charges almost daily, which is also going to be reflected in prices, according to sources.

Currently, average spot prices in the local Italian scrap market are as follows:

Prices include delivery and exclude VAT.