Scrap import contract prices from France and Germany into Italy are forecast to remain steady month-on-month, sources in the market tell Kallanish.
However, being August particularly in France, Spain and Italy, scrap import contracts are signed according to the needs of Italian and Spanish mills and their August stoppages. Material is only delivered at the beginning and the end of the month while scrap export contracts are usually signed towards the middle of each month.
Because of market uncertainty in June and July, traders registered a substantial reduction in sales volumes. This is also the case for August but is due to a seasonal effect. The scrap import and export markets are now quiet as most mills and merchants in Italy and France have closed for the summer break and will resume activity between 20-27 August, Kallanish hears. “There isn’t a price for August. It is possible that a mill requests last minute material and pays €5-10/tonne ($5.7-11.5/t) more compared to July. It is really a spot market and relies on immediate mills’ needs,” a trader says.
Imported mixed quality new arisings (E8) from France and Germany are selling to Italian mills in August at €310-315/t delivered, depending on quality. Values in domestic European markets such as France, Italy and Germany have remained stable at July’s levels, sources suggest.