Domestic scrap prices have decreased significantly in the Italian market in the first ten days of September, contrary to the positive expectations of several sources before the summer break. The decline amounted to €20/mt on average compared to August levels, and was due to the climate of strong uncertainty and the negative trend of international market (the CFR price of HMS I/II 80:20 to Turkey has decreased by $20-30/mt compared to the beginning of this month).
According to some sources, the decline of Italian scrap prices has also been due to local steel mills "riding the wave to reduce scrap prices as quickly as possible". "I expect other ten days of widespread panic and then the achievement of a balance," said a scrap dealer, who remarked that the fall in raw material prices should affect domestic finished products prices as well.
Currently domestic rebar prices are at €425-440/mt ($468-484/mt) ex-works on average, compared to the €450/mt level that was recorded at the end of August, and sources spoke of "feelings of further price reductions" in the coming days given the lack of sales on both the domestic and export market.
Talking about scrap, several sources expect further price decreased in the coming period also depending on the production regime that Italian steel producers will decide to maintain.
Average spot prices in the local Italian scrap market are as follows:
|
Quality |
Average spot price (€/mt) |
|
Turnings (E5) |
200-205 ($220-226/mt) |
|
HMS (E1/E3) |
220-225 ($242-248/mt) |
|
Shredded scrap (E40) |
240-245 ($264-270/mt) |
|
Busheling (E8) |
245-250 ($270-275/mt) |
Prices include delivery and exclude VAT.
€1 = $1.10