Local Italian scrap market continues its downward trend

Local scrap prices in Italy fell further this week, losing an average of €5/mt on the upper end of the range. In fact, over the past seven days, other Italian mills have reduced their scrap purchase prices by €5-15/mt because of the shortage of new finished steel orders and the production halts that have already begun this week. “There has been a general reduction in scrap purchase prices because of the lack of work [for steel mills]. This week [producers] have almost all stopped production. They will resume on the ninth, then close again on the 20th,” commented one source, adding, “Their intention seems to be to take €10/mt off the import market as well.” According to market participants, this will be the trend until Christmas, “but in January it does not look like things will be much different given the situation in the finished market,” as another source stated.

A steel mill official confirmed that their goal is to further reduce raw material prices in both the local and import markets. In addition, he expects that suppliers may find it difficult to deliver their scrap in December because, while some mills will continue to receive scrap until Christmas, others may stop unloading due to production stops. “In January, we will end up with high scrap yard levels and production yet to be determined, so further declines are very likely in the new year,” he added.

Prices include delivery and exclude VAT.

After last week's declines, no further price changes have been reported in the local scrap market in Spain. Demand from steel mills continues to be low, as does raw material consumption, and, according to sources, buyers have been “very quiet” over the past week as production shutdowns for the Christmas period approach.

Prices include delivery and exclude VAT.