German and Polish domestic scrap prices move sideways

Although domestic scrap prices in Germany have indicated very slightly changes during October - with some rising very slightly month on month while others have decreased by small margins - German market sources state that these minor changes can be interpreted as a sideways movement. Domestic scrap demand in the country is still strong. However, according to market players, the possibility of a second lockdown has caused scrap suppliers to maintain a cautious stance and to try to sell their cargoes before the lockdown as the numbers infected by Covid-19 are once again on the rise in Germany. In addition, the lockdown decisions in neighboring European countries such as the Netherlands, France, Ireland, Slovenia, Belgium and the UK are not helping much to boost sentiment. For November, market players are expecting a decrease in collection quotations as freight charges are moving down in the country due to the slowdown in transportation activities. One market player stated that he will restock at lower quotations and are not planning to sell large tonnages in November as he thinks prices may improve once again in December with the support of scrap exports.

The average price levels recorded in the transactions concluded during October in Germany are as shared below - all ex-works -:

Meanwhile, prices in the local Polish market have also remained stable month on month, with HMS I scrap prices still at €235-237/mt ex-works. Market players state that local mills have not received enough orders for finished steel and this results in a lack of support for quotations in the local scrap market.