Local Italian scrap prices reach their peak

After rising again over the past week, local scrap prices in Italy appear to have reached their peak. Market participants expect stable levels for the last 15 days of May.

This week saw a consolidation of the increases in local Italian scrap prices, which gained a further €5-10/mt. According to sources, with the latest round of purchases, Italian mills have all moved to more or less the same price levels and the market seems to have peaked. Traders report that, after a relatively sluggish period, demand from mills has been good as they have planned to slow down production but want to avoid complete halts.

Most market participants agree that the market has reached “a cautious equilibrium” and they expect prices to stabilize. The problem of scrap availability remains and, according to one source, there could be some price increase should steel mills resume full operations. However, this does not seem to be the most likely scenario given the difficult situation in the finished market. More likely, steel mills will leave the market, thus easing the pressure on raw material prices.

Prices include delivery and exclude VAT.

Scrap prices have remained stable in Spain over the past week. According to sources, Spanish steel mills are trying to lower their purchase prices for local and imported scrap on the grounds of greater availability due to lower purchases from Turkey. However, it seems unlikely that they will be able to achieve lower levels, especially in the local market, and traders expect quotations to remain at these levels throughout May.

Prices include delivery and exclude VAT.