Sharp increase in local Italian scrap market  

This week, the bullish trend in the local Italian scrap market has accelerated sharply as there is still a shortage of material and as mills continue to place orders to keep production going. Local scrap prices have increased by an average of €15-20/mt from last week.  

Until last week, mills were expected to stop production early in December. However, this week the scenario has changed and, according to sources, production will continue until Christmas: "December seemed a shorter month than usual, but [mills] have changed their plans." This situation, combined with low scrap availability, has driven local scrap prices to high levels, with an average increase of €15-20/mt in deals. One source commented, "We are coming off months of sluggish production and scrap is in short suppl. Mills are running out of stock and are extending production, and this has driven up prices."  

Market players are uncertain about future developments. The dynamics at play are difficult to read, with one source stating, "It is unclear whether this is the real market or more dictated by contingent situations." Some traders expect further increases between now and the end of the year due to the continuation of this ambivalent situation. Others think that these levels are not sustainable and that the market will collapse. Most sources, however, hope for a stabilization of prices. 

Prices include delivery and exclude VAT.