Local Italian scrap prices on the rise, uncertainty over future trend

This week, the local Italian scrap market saw a consolidation of the increases that began last week. However, it is difficult to predict whether this will translate into an actual upward trend in scrap prices as there is a lack of support from finished product demand.  

The local Italian scrap market has seen increases of €5-20/mt for contracts closed in the past week, especially at the lower end of the range and for shredded scrap, which "is the most requested because there is little availability," according to one market participant. As for other grades, the supply-demand ratio is stable at the moment and sources indicate a "strong willingness to buy on the part of producers because they are [probably] afraid the market will rise."  

As for market trends in the short and medium terms, uncertainty reigns among traders because of the many variables at play, amid ongoing conflicts and the recession in Germany directly affecting rebar prices. Many market players expected a clearer situation after the holidays, but the overall scrap demand picture still raises many doubts instead. According to one source, "Some steel mills are not very active in the market and we do not know whether it is because they have no orders or whether they are waiting to see how [the scrap market] will go." Another trader agreed, stating, "It is difficult to interpret the market. Prices are rising, but there is less euphoria than in December." Several sources, however, expect prices to remain stable as some large steel mills are not willing to increase scrap purchase prices and others would like to lower prices as demand for finished products does not seem to be improving.  

Prices include delivery and exclude VAT.