In the past week, the Italian domestic scrap market has moved sideways, while transaction activity has slowed down compared to the start of September, when steel mills were obliged to refill their scrap yards which had been left almost empty ahead of the summer production halts. According to the latest market update by SteelOrbis, current average prices are as follows:
Quality |
|
Average price |
|
Sept 14 (€/mt) |
Sept 14 ($/mt) |
Sept 7 (€/mt) |
|
HMS |
280-295 |
369-388 |
280-295 |
Shredded scrap (E40) |
310-325 |
408-428 |
310-325 |
Busheling (E8) / (E8C) |
305-315 / 325 |
402-415/428 |
305-315/325 |
*Prices are for delivery to customer and exclude VAT
Italy's long steel producers, which are struggling with a domestic market showing scarce demand and export markets heavily influenced by the euro/dollar exchange rate, are likely to maintain their scrap purchase prices unchanged until the end of the month. According to scrap suppliers consulted by SteelOrbis, mills' purchase managers have started to request rebates of around €5/mt. Supply and demand levels are essentially balanced at present.
Scrap prices in the EU have increased by about €10/mt (and by more in Germany) in September following the increases witnessed in August, and this provides support for the Italian market. Moreover, Italian long steel producers want to underpin finished product prices in the current difficult market environment and a scrap price reduction would not work in their favor.
Worries are diminishing regarding the downtrend of iron ore prices. In fact, in the past week a sudden rebound in ex-Brazil and ex-Australia offers to China has contributed to increasing confidence in the overall international raw material markets.