Italian scrap market quietens after mild increases


Italian scrap prices are steadying after rising by about €5/tonne ($5.81/t) at the start of the month. Tight domestic collection is keeping Italian values among the highest in Europe at above €300/t on average, market participants tell Kallanish.
Mills are willing to pay more when higher-quality batches become available. According to one seller and one buyer, some producers have lifted prices by €5-10/t compared to October, while others have kept their price lists largely unchanged month-on-month.
Domestic E40 mixed grade starts at roughly €310/t delivered. Higher automotive-quality material is assessed at around €340/t. E3 scrap is quoted at €290-310/t, while E1 is transacting at €280-290/t delivered. E8 mixed grade is reported in the €310-325/t range, climbing to €360/t for very high grades.
Despite the early-month increases, the market has now quietened, and price movements have been uneven as not all mills accepted higher values. Purchasing car bodies for processing into automotive grade E40 remains extremely costly, with the selling price of the processed material failing to cover expenses.

Several merchants report that this year has been either unprofitable or only marginally positive. “Next year I do not see any recovery. There are no positive signs that the steel market or the economy will improve,” a large merchant comments.

 

From: Kallanish