Stable prices in local Italian scrap market amid rising worries for next year

No major variations have been reported in the local Italian scrap market this week. Mills’ production rates are proceeding at a regular pace, but some scrap traders have been struggling in terms of both buying and selling volumes.

Concerns are growing among local scrap suppliers in Italy, especially about the beginning of next year, which is marked by various uncertainties mainly related to CBAM and safeguard measures. "Our customers are complaining about low orders [of finished steel]," an Italian scrap seller said. "There are serious doubts about next year's trend." "I expect very little trade in January with skyrocketing prices. I am seriously worried", another Italian scrap trader commented, meaning that he fears that scrap prices and raw material prices in general might become so high (due to CBAM, the safeguard measures and all the related uncertainty) that trading activity could stop.

Meanwhile, according to market reports, some Italian producers have already started to close longer-term scrap purchase contracts that cover until mid-December, in order to be ready for winter closures. Another important Italian producer, on the other hand, has reported that he has been closing his contracts with traditional deadlines, because "December is always a peculiar month. However, I do not rule out that, if someone proposed [a longer-term contract] to me, I would consider it," a source at the same mill stated.

Discussions in the Italian scrap and long products market this week have been linked to recent developments in the CBAM legislation more than prices, because, according to various market players, they are more misleading than helpful.

Overall, scrap prices in the local market in Italy have remained unchanged, although a slight upward tension has been reported in busheling scrap prices - especially E8C - and turnings.

Prices include delivery and exclude VAT.