The Italian scrap market was essentially stable for most of the month of March. In early March, quotations had registered an increase from February levels but then the market quickly stabilized. In recent days, however, corrections have been observed, with prices decreasing by about €10/mt ($14/mt). Steel producers say that at present their scrap yards are adequately stocked, thanks to the high volume of imported scrap which arrived in the recent period (especially from central Europe). On the other hand, scrap suppliers claim that the mills' stock levels range from medium to low.
In the Italian scrap market, heavy melting scrap (HMS) stands at €310-330/mt ($440-469/mt), while shredded scrap and busheling prices are at €350/mt ($497/mt) and €370-380/mt ($526-540/mt) respectively. All prices are delivered to customer.
Meanwhile, in the international market, the scrap buying activity of Turkish mills has been halted by two main factors: 1) the increasing strength of the euro against the US dollar; and, 2) the uncertainty resulting from the political turmoil in North Africa and the Middle East. The situation will become clearer when Turkish steelmakers return to the market with greater determination to conclude purchases.
SteelOrbis has heard from market sources that in April Italian scrap prices could see another negative correction of €10-20/mt ($14-28/mt).
€1 = $1.421