Local Italian scrap prices unchanged, declines expected in coming weeks

Local scrap prices in Italy have remained stable this week. However, market participants expect declines in the range of €5-10/mt in the coming weeks, in the wake of what is happening in the international markets.

February ended with prices still stable in the local Italian scrap market, which is currently experiencing a not particularly bright moment, characterized by poor levels of supply and demand. One source commented, "A stable market is good for everyone, for us who sell and for steel mills that manage to stay supplied." On the export front, the market is quiet. Given the sharp declines in deep sea prices in Turkey, which fell below $400/mt CFR, and that prices for ex-Italy scrap are at $380-382/mt CFR Turkey, traders prefer to sell locally at more attractive levels.

For March, market participants expect lower prices, but sellers are not worried about sharp declines such as in the international markets. According to one source, prices are expected to drop by €5-10/mt, "Steel mills know that scrap availability is tight, so they prefer not to lower their purchase prices by €20-30/mt and to risk not being able to buy when they need to." However, this is a precarious balance. "If something changes on the side of demand, everything changes," commented a trader.

Prices include delivery and exclude VAT.

The situation is similar in the Spanish scrap market. Local prices have remained stable this week, while import prices have dropped by €5-10/mt. However, these are indicative prices as no deal has been confirmed at these levels. According to market participants, further declines are possible in both segments for the coming weeks.

Prices include delivery and exclude VAT.