Ferrous scrap: the Italian market is still waiting

The Italian scrap market remains in the doldrums this week, with few or no sales and mills rejecting offers from dealers at higher prices.

The trend in other European countries seems to be for a 40-50 €/tonne ($43-54/tonne) month-on-month increase, due to strong demand and high finished product prices. However, Italian mills are not yet demanding material and some would like to decrease their scrap prices.

Exporters in Italy report that local mills are inquiring about prices, but are withdrawing when confronted with proposed quotations for April.

Steel mills ordered low volumes in March on the domestic and import markets, and demanded cheaper grades. Steel mills continue to be plagued by high energy costs and therefore remain in wait-and-see mode.

In March, thick E3 scrap was sold in Italy at €480-495 per tonne. The lower grade E1 was sold at 440-450 €/t, depending on the grade. Italian mills paid E40, a low-grade mixed crushed material, at €540/tonne delivered.