Italian stainless steel scrap prices are seen increasing further next month, with prices for grade 304 (18-8) expected to rise by 6-7% per tonne and grade 316 scrap potentially seeing an even higher increase.
The price increase is driven by higher raw material costs, particularly rising nickel and ferrochrome prices, as well as tighter scrap supply in Italy.
Scrap sellers continue to report tight or non-existent margins as purchasing 304 and 316 grades is expensive, while selling values this month have been depressed.
Italian contracts for domestic 304 scrap in March are hovering around €1,450/tonne ($1,564) delivered on average, while 316 scrap is at €2,450-2,470/tonne. Prices are expected to approach €1,500/tonne for 304 next month.
The performance of finished stainless steel products, both long and flat, remains subdued in Italy, with only slightly more orders for coils.
Italian mills are currently resisting price increases and two long products mills are idle, set to resume production after the Easter break.
The limited availability of stainless steel scrap, coupled with strong demand, is supporting the price increases, though tight margins remain a concern for scrap suppliers.
