European scrap contracts are expected to increase

Due to high demand in Turkey, traders in France, Italy, Germany, and Eastern Europe are expected to request a €30 ($31.7) per ton increase.

Sellers in some Eastern European countries, such as Romania, are allegedly demanding a monthly increase of $50/t. Although it is thought that it is too early to estimate March price increases in Poland, they are expected to be in the range of €20-30/t. Producers in Germany and Italy have already given a €10/ton increase for contracts delivered immediately in the first week of March. In both countries, this pushed mixed grade E8 to €390-400/t delivery and E1 to €360/t delivery.

Producers in Italy are wary of price increases, but they are looking for raw materials. Low sales continue to affect the Western European rebar, merchant bar, and wire rod markets. In March, some mills will implement production cuts, causing scrap demand to fall. However, due to their large orders, flat and special steel producers are expected to receive a large amount of scrap.