German and Polish scrap markets relatively stable

The local German scrap market has indicated a slight decrease in the German Steel Recycling Association’s (BDSV) index, though market players state that prices have stayed relatively stable in actual deals. “I think that during the holiday season some mills concluded bookings at a slightly lower price level, and so BDSV’s prices are reflecting those deals,” a source reported.

Over the first two weeks of January, German mills failed to buy large tonnages due to their low-priced bids. However, they increased their prices later and the flow to mills accelerated. “Price levels were good after the upward adjustment. Suppliers sent a lot of scrap to mills but, now that producers’ inventory levels have reached thigh levels, they stopped accepting scrap,” a German supplier reported. Two sources state that German scrap suppliers are planning to cut their inventory costs in the coming period. As a result, collection prices will be lower and a €5-10/mt price decrease in the EU region is expected in February.

The rising energy costs are taking their toll on German producers too. “These increased price levels are putting mills in a strange position. They can decide to take a break from production and sell their portion to the market and still profit from it,” a source said.

Meanwhile, a scrap seller in western Germany stated that they have concluded some sales to Antwerp. HMS I/II 80:20 scrap was sold at €370/mt DDP Antwerp, while HMS I/II scrap was sold at €343-352/mt ex-works, SteelOrbis has learned. This seller stated that scrap collection activities are slow after the holiday season, but producers can now make a healthy evaluation of the additional costs resulting from the increased energy costs.

According to the latest data provided by the BDSV, in the first 20 days of January, local scrap prices moved down by €3-10.7/mt month on month. Additionally, the year-on-year increase is still significant, in the range of €24.4-113.3/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 remained stable, in the range of €420-425/mt DAP. “Demand in the local Polish scrap market has been and still is on the high side,” a source commented. A slight decrease in prices is expected in February, SteelOrbis understands.