Italian mills will be paying more for domestic and imported scrap in January. The scrap market is this week resuming work after the Christmas holiday break. Mills also resumed production and sales activity on Monday and are looking for material, sources tell Kallanish.
Steelmakers will start buying scrap towards the middle or end of this week. Most are adopting a wait-and-see attitude, while others are beginning to say they will grant €10-15/tonne ($10.6-16) increases compared to last month.
The price tension in the international market, short supply of grades such as shredded and chiselled, E40 and E1, and increasing European transport costs are likely to push up Italian prices significantly this month. Large metal recyclers will wait a few days to start quoting but intend to demand increases of at least €10-15/t.
One source notes many requests were made for E40 on the first day of work after the holiday. Merchants have optimistic views of sales volumes and margins for this and next month.
Domestic prices remain flat on the beginning of December as the first contracts will be agreed by the end of the week. Before the holiday break, domestic E8 mixed grade was sold at €350-360/t delivered and at €380-390/t for the very high grade. Old thick scrap E3 was at €340-355/t delivered and at over €360/t for the railway quality. E40 mixed grade was hovering at €350-360/t and premium automotive grade at €380-390/t, while E1 was being transacted at €320-350/t delivered, depending on quality.
Natalia Capra France