The Italian scrap market remains in a lull this week, with little or no sales occurring and mills refusing merchants’ offers at increased prices.
The trend in other European countries seems to be for a €40-50/tonne ($43-54/t) month-on-month increase on account of strong demand and high prices of finished products. However, Italian mills are not yet requesting material and some would like to decrease their scrap prices.
Grades such as E8 new arisings have become particularly expensive for merchants to buy. Merchants are offering to mills in April at €610-620/t for the mixed grade, but local mills have refused these offers. Exporters to Italy who spoke to Kallanish say local steelmakers are enquiring about prices but retreat when they are confronted with the proposed April quotes.
Sources say mills ordered low volumes in March on the domestic and import markets, and requested less expensive grades. Steelmakers continue to be plagued by the high cost of energy and therefore remain in wait-and-see mode.
In March, domestic old thick scrap E3 was sold in Italy at €480-495/t delivered. The lower E1 grade was at €440-450/t delivered depending on quality. Italian steelmakers paid for E40 shredded mixed low-grade material at €540/t delivered and at €560/t delivered for the high automotive grade. E8 transacted at €520-540/t depending on grade.
Natalia Capra France