Local Italian scrap market rebounds in early November

After remaining stable in October, local Italian scrap prices moved up in early November due to lower scrap availability and following the upward trend in the Turkish scrap market.

Despite negative expectations for November, the local Italian scrap market has increased by an average of €2-15/mt compared to October’s average prices. One source said, “It is a transitory moment. We expected that the [scrap] market might drop due to low orders and high energy costs.” Low scrap availability was cited among the factors responsible for the rise. In fact, scrap collectors report difficulties in collection, with one noting, “Scrap availability is tight and decreasing.” According to sources, the mood in the Italian scrap market has also been positively affected by the higher price levels in Turkey.

Expectations for November and December are uncertain. Sources expect no major movements in these months when traditionally “the market retires.” In addition, low demand for finished steel products is affecting scrap purchases. According to one source, “Currently, steel mills buy according to their punctual needs,” and another market player confirmed this, commenting, “If they have orders they buy, otherwise they stop production”.

As a result, SteelOrbis’ local scrap reference prices in Italy are as follows:

Prices include delivery and exclude VAT.

Scrap exports from Italy remain interesting for traders, given the currently positive signals in the region triggered by higher deep sea deal prices in Turkey. The latest workable prices from Italy have been reported at €270/mt FOB.