Local Italian scrap prices unchanged, further declines possible in October

The situation in the local Italian scrap market has not changed in the past week: prices have remained stable and trading activity continues to be scarce. “There is very little trading. We are waiting to see what happens in October,” an official at an Italian steel mill said. As anticipated last week, production levels will be decisive for the development of raw material prices. According to several sources, if Italian steel mills further lower their capacity utilization rates to cope with low orders and high energy prices, this could lead to further declines in scrap prices for October.

Furthermore, scrap prices cannot find much support internationally. Low billet prices from Asia are affecting the Turkish scrap market and “as long as billet prices remain so attractive, there can be no increase in scrap,” as one market participant said. In addition, the purchase of billets further reduces scrap consumption, which is already scarce due to the low production rates of steel mills, thus leaving room for declines in raw material prices.

Prices include delivery and exclude VAT.

The local Spanish scrap market has remained stable over the past week, despite some traders expecting a €5/mt increase in quotations. Demand for scrap from steel mills continues to be low as the hoped-for resumption of production activity in September is not materializing sufficiently to boost the scrap market.

Prices include delivery and exclude VAT.