The Italian scrap market is expecting substantial increases after the very few transactions last week were closed with a €10-13/tonne ($10.5-13.6/t) month-on-month hike only for high qualities of scrap grade new arisings (E8). The market has only just resumed work after the Christmas holiday break.

“It is still early to know how much scrap prices will hike but towards Wednesday or Thursday we will have better visibility of January prices,” a large merchant tells Kallanish. Meanwhile, a known E8 scrap supplier has halted sales due to the expectation of a hike of up to €40/t month-on-month.

According to sources, such a hike is unlikely. “For the moment mills are putting off their decisions on prices and purchases as they are waiting to see what happens with national and international quotations,” another source comments. “January is a short month and mills seem to be in the process of accepting a smaller increase of around €10/t on average compared to December. It is possible that the market will reach a €40-50/t increase in February, depending on Turkish transactions and international prices of scrap and iron ore.”

Italian prices are stable on December levels, except for a few transactions for E8 that have ranged from €230/t ($241.9/t) delivered for lower qualities, to as much as €250/t delivered for the highest grades. E40 remains stable at €230-240/t delivered but is expected to reach €240-250/t delivered later this week. Demolition quality E1 is now at €220-225/t delivered. The lower quality demolition E3 is now at €210-215/t delivered, sources suggest.