Upward pressure still seen in Italian scrap market, but prices largely unchanged

Although rumors of possible upward adjustments in the Italian scrap market have circulated this week - mainly due to the rebound in the international scrap market and especially in Turkey - and to reduced supply compared to last month, Italian mills have not made any official changes to their scrap purchase price lists.

Considering the scrap price increases granted in November, Italian mills are now seeking to keep their purchase prices stable for December, also because, according to sources, their scrap warehouses are well supplied and they are in no rush to buy.

It is possible, however, that upward pressure caused by the fear of not receiving sufficient volumes in time before the winter closures, will lead some Italian steel producers to agree to slightly higher levels for December purchases, up by a maximum of €5-10/mt.

Another factor to be considered, moreover, is precisely the winter closures, which will not be excessively long or early this year, unlike what is happening in Germany. According to the first rumors circulating in the market, two major Italian mills have claimed that they will stop production from approximately December 20 to January 6, while two others would like to stop for the shortest time possible, but have not yet officially communicated their intentions.

As usual, December is turning out to be a delicate and complex month for local players in the Italian scrap market, and expectations are for caution to prevail in the coming weeks before the holidays.

Scrap prices in the domestic scrap market in Italy have been reported as in the following table, while the price ranges within the HMS category are €265-280/mt for E1 and €290-300/mt for E3.

 Prices include delivery and exclude VAT.