Italian scrap prices are witnessing a decline, as some mills are communicating a €10/tonne ($10.8) price decrease for new contracts. Price reductions are also expected from other mills, according to Assofermet reports. The high levels paid in May are struggling to maintain their ground, with values falling back to more moderate levels, in line with other European Union nations like France and Germany.

According to some merchants, the scrap shortage persisting in Italy is not as severe as it was a few months ago. However, the availability of obsolete scrap remains limited, keeping prices for this grade relatively high compared to shredded scrap.

The decreases come after Italian scrap prices experienced a predominantly bearish trend in March, with reductions of approximately €15-20/tonne amid consistently low demand from steel mills, as reported by Assofermet, the association representing Italian distributors of scrap, raw materials, and steel products.

Continuous production shutdowns led to a significant slowdown in scrap deliveries, although steel mills' inventories remained at medium-to-high levels. Traders saw a drastic decline in volumes in the market, fueling concerns over the slowdown in economic activities from which scrap is generated, resulting in decreased collection.

While the Italian scrap market faces downward pressure, the sentiment for April was moderately optimistic for pig iron, with the expectation of a return in demand from numerous consumers, according to Assofermet's analysis.