Italian scrap prices, particularly for new arisings E8, are expected to increase by some €100/tonne ($109) in the coming days as a result of declining automotive production and Ukraine war-induced raw materials shortages.

Prices in Italy have increased by €60/t on average in March versus February. They simultaneously hiked by an average of €90/t in France and Germany, and by over €100/t in Eastern European countries. Some sources believe the high E8 grade, including packs, will go over the level of €600/t in April.

Prices in Italy stopped climbing last week due to production stoppages at most local mills. All mills that stopped their hot-end area however resumed production on Monday and, considering the shortage of pig iron imports, they are expected to need scrap. Monday was nevertheless very quiet for scrap trade as mills seemed to adopt a wait-and-see attitude, Kallanish notes.

So far this month, domestic E8 mixed grade scrap is being transacted at €520-530/t delivered, while packs of E8 reached €550/t delivered. Steelmakers are paying for E40 shredded mixed low-grade material at €530/t delivered and at €560/t delivered for the high automotive grade. Old thick scrap E3 is at €480-495/t delivered. The lower E1 grade is at €440-450/t delivered depending on quality, sources suggest.