Local Italian scrap market mostly stable

After returning from the winter holidays, the local Italian scrap market has remained largely unchanged in terms of prices compared to December, while market participants are waiting for developments in the finished steel segment.  

The first week of January saw a confirmation of December prices for scrap in Italy, with only a few increases reported in the range of €5-10/mt. According to one source, "It is a week of waiting. We have to see what happens in the [finished] market." Currently, scrap availability has improved compared to December as scrap warehouses were working over the holidays and stocking up. However, once these stocks are exhausted, "Supply will become tight once more," according to a market participant.   

Accordingly, sources expect the market to rise further in the short and medium terms due to the inevitable gap between supply and demand. One trader commented, "The market will not go down. If demand increases, it will create tension in the scrap market." Another determining factor are the logistical challenges that characterize the winter months, with transport costs likely to increase sharply due to rising water levels in the rivers in Germany.  

Prices include delivery and exclude VAT.