German and Polish scrap markets move up        

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).

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.