Italian scrap prices showed relative stability in January versus December. However, in recent days, there has been a modest increase of €5-10/tonne ($5.1-10.3/t) in contracts, returning prices to levels observed in November, Kallanish hears.
Demand appears to have rebounded since mid-January, following a lull as mills commenced the month with well-stocked scrap yards.
Two large sellers report that their scrap collection is underperforming, while certain mills are prepared to offer price increases for the most sought-after higher grades.
Numerous sources concur that the scarcity of scrap is now a major issue plaguing Italy. This situation is compelling mills to source scrap from other EU nations at elevated prices. The mixed E8 new arisings grade has been imported at €335/t, whereas the higher grade has been transacted at €370/t delivered from France and Germany.
January E8 mixed grade is pegged at €325-330/t delivered on average, while the premium E8 grade was priced at around €350/t delivered. Domestic E40 mixed grade is at €330-340/t. Market participants are securing E3 at a delivered price of €315-330/t, while E1 is transacted at approximately €290-300/t delivered, sources suggest. E5 values are also climbing to an average of €295/t delivered due to shortage.
According to Italian trade association Assofermet’s market note, scrap collection in Italy is weak, becoming increasingly complex and costly. A stronger scrap demand from mills is likely to lead to an increase in prices.
