Local Italian scrap market sees essentially unchanged situation

Despite the rises seen in the international markets as a result of the stimulus policies issued by China, the picture in the local scrap market in Italy has not changed this week: the general price range has remained the same, although some steel mills have raised or lowered their scrap procurement prices according to contingent needs.

“The increases that are happening internationally are not taking place in Italy because our finished steel still cannot compete with imported steel,” one source commented. An official at one steel mill stated that the international upward trend is not having any impact in Italy, at least for now, adding, “Should it consolidate, perhaps we will see a price increase [of the finished product], but nothing will change at the consumption level”. For October and November, further production slowdowns and stoppages are expected by steel mills, whose intentions continue to be to lower scrap purchase prices by €20-30/mt. On the other hand, scrap traders, both Italian and foreign, are attempting to resist any further decline in the price of the raw material by proposing unchanged prices.

Prices include delivery and exclude VAT.

In the Spanish market, according to sources, it is still too early to see a real reaction to the increases in China and Turkey. However, it seems that Spanish producers are now more open to discussing higher prices for imported scrap. Moreover, earlier this week Spanish producers lowered their local scrap purchase prices by €15/mt, but, according to traders, quotations are expected to rise again to previous levels soon.

Prices include delivery and exclude VAT.