In recent days the Italian scrap market has continued to see equilibrium between supply and demand - an equilibrium came into existence several weeks ago. In fact, in April prices have only indicated downward corrections of about €10-20/mt, which is nothing compared to the high volatility observed in previous months. Lower quality scrap continues to be more vulnerable to decreases, because of the continuing weakness of the long steel market (in particular rebar) and the better availability in the market compared to higher grade scrap materials (i.e., busheling).
Currently, prices of heavy melting scrap (HMS) in the local Italian market stand at €290-310/mt ($427-441/mt), virtually unchanged compared to last week. Busheling and shredded scrap prices are also stable, in ranges of €360-370/mt ($529-544/mt) (with a peak of €380/mt for high quality busheling) and €330-350/mt ($485-515/mt) respectively. All prices are for delivery to customer.
In terms of inventories, producers consulted by SteelOrbis have indicated that they have enough scrap in their yards, thanks to the steady arrivals of materials in the recent period. However, some market players claim that scrap inventories held by local steelmakers are still on the medium-to-low side.
As for the international market, Turkish steelmakers have made several bookings from the US and are beginning to witness the revival of steel exports from the main North African markets. Currently, ex-US HMS is offered to Turkish buyers at $460/mt CFR. Export activity is much more difficult for European scrap suppliers, especially because of the strength of the euro against the US dollar.
Looking ahead, according to most market players, the Italian scrap market should witness a further downward price correction of €10-15/mt in May, although some do not exclude a reversal of the price trend in the second half of the month.