Domestic scrap quotations in Germany and Germany have indicated a better-than-expected price trend over the month of October.
The local German scrap market was expected to decrease by another €30/mt in October. However, sellers had not accepted mills’ lower bids when the market opened. This has led to a €20/mt increase in the market coming closer to the end of the month. Market players state that some of the major mills have bought E2-E8 grade scrap at higher price levels this week since they failed to find the tonnages they needed at lower quotations. One market player stated that German sellers have been focusing on Belgium and the Netherlands in October amid the price rises seen in the export segment.
A western German seller concluded a deal to Antwerp for E3 grade scrap at €390/mt DDP, HMS I/II 70:30 scrap at €375/mt DDP and HMS I/II scrap at €365/mt DDP. This level is higher than the offers the same seller received from France a week ago. In western Germany, insurance operations for materials damaged during the floods in July have been completed and there is no shortage of scrap flow, SteelOrbis understands.
Another scrap seller in Germany stated that there is strong demand in the market, particularly from foundries. “Foundries have found themselves in a difficult spot, brake discs are sold at €510/mt,” one supplier stated. “However, this rise cannot be seen in BDSV prices since they represent the first 20 days of October and due to the impact of the decreases recorded at the end of September on average quotations,” one market player stated.
The local German scrap market is expected to move up in the coming month as demand is still strong. With the impact of the winter, water levels in German rivers have once again decreased, hence ships are loaded with lower tonnages as freights are increasing.
According to the latest data provided by the BDSV, in the first 20 days of October local scrap prices followed diverse trends, with E1 increasing by €15.3/mt as others decreased by €1-16.3/mt, month on month. On the other hand, the year-on-year increase is still significant in the range of €110.4-206.6/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: October 2021(€/mt) |
Price: September 2021(€/mt) |
Price: October 2020 (€/mt) |
Monthly Change (€/mt) |
Annual change (€/mt) |
|
E1 - Old steel scrap |
322.3 |
307 |
192.8 |
15.3 |
129.5 |
|
E2/E8 - New steel scrap |
421.9 |
429.4 |
215.3 |
-7.5 |
206.6 |
|
E3 - Heavy old steel scrap |
358.6 |
368.4 |
216.3 |
-9.8 |
142.3 |
|
E40 - Shredded scrap |
366.4 |
367.4 |
222.9 |
-1 |
143.5 |
|
E5M - Steel turnings |
291.8 |
308.1 |
181.4 |
-16.3 |
110.4 |
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
During the past month, prices in the local Polish market for HMS I scrap have increased slightly from the range of €360-370/mt DAP to €373/mt DAP. Market players state that domestic scrap demand is still healthy in Poland, but the higher scrap quotations observed in the EU countries are expected to support prices in the coming month. Meanwhile, “vessel problems are also experienced in Poland”, one source stated. Also, the surge in energy prices is expected to take its toll on steel quotations in the country.