Scrap prices in Italy are stabilising after rising by around €15/tonne ($16.2/t) last month. According to sources, prices for certain sought-after grades will remain elevated, owing mostly to ongoing shortages.

However, additional rises in April are unlikely, Kallanish notes.

The current market conditions indicate a sustained weakness in demand for finished long and flat products. Prices for some long products, such as rebar, fell in Italy during March.

Several producers in Europe are concerned that rising production costs are reducing profit margins, and some are implementing production cuts. As the cost of car bodies remains high, several scrap merchants are continuing to offer high prices for E8 new arisings and E40 scrap.

April is expected to be a short month for trading, influenced by holiday schedules. Certain longs producers may opt to prolong their production halts to align demand with supply.

Two merchants confirm they are implementing contracts at stable prices compared to March.

This week, domestic E40 mixed grade is priced at €340/t and lower depending on quality, while the automotive quality is valued at €370/t.

Market participants are buying E3 8mm at a delivered price of €345/t, while the lower grade is priced at €320-330/t, contingent on quality.

The current transaction price for E1 stands at roughly €310-330/t delivered and at €320-325/t for E5. E8 is hovering at €330-340/t delivered for the higher-quality mixed grade. This equates to €370/t for the higher quality, sources suggest.