Local Italian scrap market in the doldrums

Local scrap prices in Italy remained stable this week. Market participants are waiting for February to see if there will be any changes. 

There has been little movement in the local Italian scrap market over the past week and prices have remained unchanged week on week. Market players said steel mills are not very interested in buying scrap and have reduced quantities in the latest deals. According to sources, it is a "moment of stagnation, they [steel mills] probably don't know what to do either." 

Most market participants expect this lull to last at least until the first week of next month, "then it becomes crucial to figure out how demand will be in February. Everything seems tied to finished steel, which doesn’t seem to be in particularly good shape," a trader commented. Rumors of a possible turnaround are circulating in the market, and some sources think prices will edge down in the near future. However, others believe the scrap market may remain strong next month as finished steel prices are expected to increase in February and low availability of some scrap categories will likely support prices. 

Prices include delivery and exclude VAT.