Italian and French scrap prices are rising by €20-25/tonne ($21.3-26.7/t) month-on-month after merchants requested €35-40/t hikes which mills are still unwilling to support. This should soon translate into hikes for some long products despite weak demand for rebar especially in Italy, Kallanish hears from market sources.

Market participants in Italy, Germany, France and Spain are looking at Turkish transactions to be able to forecast their own end-January and February prices. Turkish buyers however have not purchased significant quantities, especially from the US, over the past three weeks.

In Italy the price range for scrap grade E8 (new arisings) was €240-250/t delivered for the highest grades in December, and is now at €255-265/t delivered. Shredded E40 is currently in short supply and is at €260/t delivered on average. However, “… the ones who have it and can guarantee a significant supply can easily obtain €270/t delivered,” an informed source says.

Demolition quality E1, also in very short supply, is now at €230-250/t delivered. The lower quality demolition E3 is now at €220-230/t delivered, sources suggest. French scrap prices are at approximately the same levels, allowing for €10/t less on average for lower transport costs within the country.