Posted on 15 Nov 2024
Italian scrap prices have remained stable since their increase of roughly €10/tonne ($10.5) at the start of November.
The projections for December, however, appear to be less than favourable. Multiple mills will likely go through prolonged shutdowns next month as a result of reduced order volumes for finished product, according to sources who spoke to Kallanish.
One long steel producer is expected to remain inactive for nearly the entire month of December, while others are considering similar prolonged shutdowns. Christmas stoppages in Italy usually last for a couple of weeks; however, this year, they are likely to extend to 3-4 weeks.
There is a risk that if mills prolong their production halts, the price increase observed in November could reverse due to reduced demand.
In October, Italy experienced the lowest scrap prices in Europe; however, domestic values in November are largely aligned with those of other EU nations. The prevailing price for E8 high grade across the majority of mills stands at €350/t, whereas mixed E8 is being quoted at around €325-330/t delivered.
Transaction prices for domestic E40 mixed grade are observed in the range of €320-325/t, while the high grade is priced at €350/t. Buyers are currently transacting E3 in a price range of €310-320/t delivered, while E1 is reported to be in the range of €290-300/t, according to sources.
Since November contracts have flattened, scrap prices in western Europe have remained largely steady. December values are also expected to maintain stability. In western Europe, the average price of E40 shredded scrap stands at €335-340/t delivered. E8 new arisings is hovering at €320-335/t, based on specific requirements, while E3 is hovering at €320-325/t. E1C is priced at around €300-310/t including delivery.
Source:Kallanish
