German and Polish scrap markets move up        

Wednesday, 23 February 2022 15:42:16 (GMT+3)   |   Istanbul
       

The local German scrap market has moved up in February, while market players agree that inflation rates as well as energy price hikes in the country have been impacting the steel market. While domestic scrap demand is recovering, scrap flow is not so healthy as some mills have taken break from production which has resulted in lower scrap generation. “This is the worst period in terms of scrap collection over the past five years, even worse than the first days of the pandemic,” one source stated. SteelOrbis observes that suppliers are trying to hold on to their inventories as they are afraid of selling them undervalued now and then experiencing further disruptions in collection. The Ukraine-Russia dispute is expected to have no impact on the German scrap market, with the only negative impact possible in gas flow from Russia.

Meanwhile, demand from export yards continues to be seen. A scrap seller in western Germany stated that they have concluded some sales to Antwerp. HMS I/II 80:20 scrap was sold at €395-400/mt DDP Antwerp, while bonus scrap was sold at €415-420/mt DDP, SteelOrbis has learned. This seller also concluded some sales in its domestic market for E2/3 grades at €430/mt DDP Germany. “We are trying to keep the tonnages low to be able to maintain our inventory costs on the low side,” the German seller commented.

According to the latest data provided by the BDSV, in the first 20 days of February local scrap prices moved up by €14.6-25.7/mt month on month. Additionally, the year-on-year increase is still significant, in the range of €161-254.4/mt. Prices are average prices for domestic transactions across Germany in the first 20 days of the given month. The prices are provided by Bundesvereinigung Deutscher Stahlrecycling-und Entsorgungsunternehmen e.V. (BDSV).

Scrap grade

Price: February 2022 (€/mt)

Price: January 2022 (€/mt)

Price: February 2021 (€/mt)

Monthly Change (€/mt)

Annual change (€/mt)

E1 - Old steel scrap

372.5

346.8

195.6

25.7

176.9

E2/E8 - New steel scrap

463.7

449.1

209.3

14.6

254.4

E3 - Heavy old steel scrap

413.5

394.6

214.2

18.9

199.3

E40 - Shredded scrap

424.4

400

220.2

24.4

204.2

E5M - Steel turnings

337.4

321

176.4

16.4

161.0

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

During the past month, prices in the local Polish market for HMS I scrap have also moved up by €30-35/mt to the range of €450-460/mt DAP from levels of €420-425/mt DAP. Higher grades like P&S and bundles are at around €470/mt DAP and €500/mt DAP, SteelOrbis understands. “Polish and German mills have already offered these levels and some have accepted these prices, so we can say demand in the region is very good,” a source in Poland stated. The aggressive movement of Russia in relation to Ukraine is stressing the market, though, with the sanctions initiated for Russia, Russian steel is considered to be out of the EU and European mills are looking for an opportunity to fill the gap.


Similar articles

Mexican domestic scrap prices

28 Mar | Scrap & Raw Materials

Carbon and stainless scrap prices in Taiwanese domestic market - week 13, 2024

28 Mar | Scrap & Raw Materials

Turkey’s deep sea scrap prices stabilize at $385-390/mt CFR

28 Mar | Scrap & Raw Materials

CISA: Coking coal purchase cost in China down 9.86% in Jan-Feb

28 Mar | Steel News

US scrap market still expecting sideways pricing in April

27 Mar | Scrap & Raw Materials

Ex-US deep sea scrap prices to Turkey increase, ex-EU prices relatively stable

27 Mar | Scrap & Raw Materials

Downtrend reverses in Pakistan’s import scrap segment

27 Mar | Scrap & Raw Materials

Average local Chinese scrap prices rise amid tight supply after previous decreases

27 Mar | Scrap & Raw Materials

Import scrap prices in India move up, but low bids prevent deals

27 Mar | Scrap & Raw Materials

Baltic countries and Czech Republic seek EU ban on ex-Russia scrap imports

27 Mar | Steel News