After the substantial stability observed in June, the German scrap market recorded a significant decline in July, in line with other European markets. According to sources, most transactions have been concluded with decreases averaging €20-25/mt compared to the previous month.
The German economic scenario continues to be characterized by weak growth and persistent uncertainty. After a substantially stagnant first quarter, the main economic institutions have revised down their growth forecasts for 2026.
The main factors negatively affecting market sentiment are the geopolitical tensions in the Middle East. According to sources, the resumption of hostilities after the short truce recorded in June has once again fueled volatility in energy markets, resulting in higher costs.
Despite the difficult macroeconomic context, however, German crude steel production continued to show positive signs. In June, it increased by 9.5 percent year on year to 2.93 million mt, while in the first half of 2026 it rose by 8.9 percent year on year to 18.63 million mt. This increase was mainly driven by production via the BF route, while EAF-based production recorded a contraction.
However, seasonal factors prevailed over production dynamics in July. Ahead of the scheduled summer shutdowns in August, many mills have reduced their scrap purchases and covered their needs at lower prices compared to the previous month. The cooling of demand was seen in almost all regions of the country, with decreases generally ranging between €20/mt and €25/mt. In eastern Germany, where demand was more uneven, decreases have ranged between €4/mt and €30/mt.
On the supply side, the inflow of material initially remained stable for most grades, though signs of a seasonal slowdown have emerged during the month. Scrap turnings availability also continued to remain limited.
Logistical problems, which have been weighing on the German scrap market for several months, are also persisting. The low water level of the Rhine has further aggravated the situation, limiting river transport both to seaports and to several steel plants. For this reason, the export segment has also slowed down, with purchase prices for HMS I/II 80:20 declining to €260-265/mt DAP. According to sources, inland shipping rates have in some cases quadrupled compared to normal levels, making many scrap shipments disadvantageous. At the same time, high rail costs and limited logistics capacity continue to weigh on the market.
According to data reported by BDSV, average ex-warehouse scrap prices in Germany have registered a significant decline month on month. In the first 20 days of July, the changes recorded by BDSV have been reported in a range of minus €17.0 to minus €22.2/mt, while year-on-year increases have been reported in the range of €7.8-20.4/mt.
The prices are provided by Bundesvereinigung Deutscher Stahlrecycling-und Entsorgungsunternehmen e.V. and are average prices for domestic transactions across Germany in the first 20 days of July.
| Category | Price: July 2026 (€/mt) | Price: June 2026 (€/mt) | Price: July 2025 (€/mt) | Monthly change (€/mt) | Annual change (€/mt) |
| E1 | 252.6 | 274.8 | 238.4 | -22.2 | +14.2 |
| E2/E8 | 299.1 | 316.1 | 282.2 | -17.0 | +16.9 |
| E3 | 287.8 | 307.2 | 280.0 | -19.4 | +7.8 |
| E40 | 296.9 | 318.1 | 285.7 | -21.2 | +11.2 |
| E5M | 250.4 | 270.5 | 230.0 | -20.1 | +20.4 |
Specifications:
E1 - Old steel scrap: thickness ≥ 4 mm, maximum dimensions 1.5 m x 0.5 m x 0.5 m
E2/E8 - New steel scrap: maximum dimensions 1.5 m x 0.5 m x 0.5 m
E3 - Heavy old steel scrap: thickness ≥ 6 mm, maximum dimensions 1.5 m x 0.5 m x 0.5 m
E40 - Shredded scrap: excluding incinerator steel scrap and collection scrap; density ≥ 1.1 mt/m3, Fe ≥ 92%
E5M - Turnings: excluding iron and automatic steel turnings
