Scrap metal market in Italy in the first months of 2014

India, China, Bangladesh, Turkey and Pakistan are among the top five countries using 95 percent of total scrap and ship scrap. India maintains its lead in tonnage and volume units, although some decline is noticeable. Deliveries during 2013, coupled with an outlined decline in activity, kept freight traffic at a low level.

2014 seems to confirm this trend, with 177 new contracts awarded to shipbuilders and 36 EOLs to be written off within the first two months. The presence of larger suppliers of steel raw materials puts shipowners in an environment where they suffer from insufficient return on their investment.

During March, Italian factories often quarreled with suppliers, wanting to lower their purchase prices in a short time. After lengthy negotiations, they placed monthly contracts from foreign suppliers with price reductions of 15 to 20 euros. In the domestic market, weekly prices slipped 15 euros during the first two weeks, and then they remained stable.

Only a small increase was seen at the end of the month, mostly justified by the price paid by Turkish buyers in the international import market. Deliveries have been reduced from the previous month due to lengthy deals and low prices that some factories are able to pay. Despite low inventories at the factories at the end of March, there were few deals. In anticipation of seasonal demand for rebar and long products, the mills are trying to increase their selling price by about 20-30 euros per tonne.