Local Italian scrap prices decline further ahead of summer shutdowns

Over the past week, local scrap prices in Italy have dropped by a further €5/mt on average and, according to sources, the market is now waiting for the holiday period. Production halts will begin very soon, which, as reported in recent weeks, for some mills will be longer than in previous years in order to cope with the weak demand for finished steel and high energy prices. "Within 10 days the first halts begin, while business activity is at a low level," one source said, while a scrap trader agreed, noting, "Many are already postponing purchases until September, except for those who need spot contracts.” Also influencing the low demand for scrap are the large quantities of scrap that have arrived by ship from the US and South America in recent weeks.

Given the imminent summer shutdowns, traders expect scrap prices to remain stable in the short term, and some expect them to remain stable in September as well. As one source commented, “Steel mills have stocked up and have full yards, so the market will remain quiet in September”. Producers, on the other hand, are thinking about further price declines for scrap in the coming weeks.

Prices include delivery and exclude VAT.

The local scrap market in Spain has remained stable this week. Sources report a shortage of shredded scrap that could put pressure on prices in the coming weeks. On the contrary, there seems to be an oversupply of HMS in the market, and so market participants think that prices in this category may fall in the short term.

Prices include delivery and exclude VAT.