Market sources interviewed by SteelOrbis have stated that domestic scrap prices both in Germany and Poland have increased by approximately €10/mt month on month. The reason for this price increase is the tightness of scrap supply. Local mills in the countries in question have been aggressive in their scrap purchases, mostly restocking after returning to the market. Also, one market player in Poland has mentioned that scrap inventories at mills are not at high levels. This has been confirmed by a supplier in Germany, who said that some big players have returned to the market and increased their scrap purchase prices significantly, causing others to follow suit. On the other hand, another market source from Germany said that the manufacturing industry has not recovered completely and that the lack of industrial production is resulting in slower scrap flow in the market.
Meanwhile, in west Germany, a supplier stated that E3 (bonus) grade scrap prices are currently at €230/mt DAP in the region. Also, a deal to France has been concluded by the same supplier for steel turnings scrap at €180/mt ex-works Düren, while another sale has been made to Ghent for HMS I/II 80:20 scrap at €190/mt ex-works for drop shipment, both for small tonnages. The source believes that these purchases were made to complete some cargoes for export.
The average price levels recorded in the transactions concluded during September in Germany are as shared below - all ex-works -:
|
Grade |
West Germany average price levels (€/mt) |
North and east Germany average price levels (€/mt) |
Southern Germany average price levels (€/mt) |
|
E1 grade |
205.6 |
201.7 |
185.4 |
|
E2/8 grade |
222.2 |
218.5 |
209.5 |
|
E3 grade |
223.2 |
219.3 |
204.9 |
|
E5 grade |
192.2 |
183.8 |
178.1 |
|
E4 grade |
- |
225.3 |
209.8 |
The sentiment in the local German scrap market for the coming month is bullish, with market players believing that demand will continue, providing support for prices, and some even think there is still room for prices to increase further by around €5/mt. The appreciation of the US dollar against the euro has not impacted local prices or the mood in the market significantly, SteelOrbis understands. Additionally, one market source stated, “Although European mills would like to put pressure on prices, citing the decrease anticipated in Turkey’s import scrap market, and are asking for some decrease in price in October, it seems like they will not be successful due to the tightness of supply.”
In the Polish market, HMS I scrap prices are in the range of €235-237/mt ex-works, but contrary to the German market the domestic scrap prices in Poland are expected to decrease by €5-10/mt in October since local mills have not received enough orders for October shipments.