Unchanged situation in local Italian scrap market

The picture in the local Italian scrap market has remained unchanged since last week. While a few producers have further adjusted their purchase prices, the general price range remains unchanged. After all, most steel producers have already suspended operations ahead of the summer break or are in the process of doing so, and so demand is at a very low level, balancing supply which continues to remain tight.

The outlook for September is not particularly optimistic. According to sources, much will depend on what happens in the international markets during August. As one trader commented, “If Turkey and Germany do not lower scrap prices, then it is possible that prices will return to the levels of a month ago. Otherwise, there could be further declines.” Another source agreed, stating, “Given the situation in the finished steel market, we do not expect a real recovery in prices, rather an increase of €10-15/mt due to the resumption of steel mills’ activities and purchases.”

Prices include delivery and exclude VAT.

After dropping €10/mt last week, the local Spanish scrap market is also about to enter the holiday period. “The decrease of €10/mt was a clear signal and scrap traders have also gone on holiday,” said one source. Market participants expect demand and prices to recover in September when all activities will resume at full capacity.

Prices include delivery and exclude VAT.