The first rumors in the German scrap market regarding the market trend in July have emerged this week.
As expected - and in line with the other European markets - the German scrap market is experiencing significant declines. According to sources, in fact, the main steel mills have lowered their scrap purchase prices by between €10-25/mt depending on the grade and the producer.
A steel producer in central-eastern Germany has lowered scrap prices by around €20/mt for old scrap and around €25/mt for new scrap. Another major producer based in northern Germany has reduced its list prices by €10/mt on all categories, while the main producer is reported to have reduced its list prices by €25/mt. Finally, the Austrian mill has lowered scrap purchase prices by €10/mt for July.
"Mills don't need to buy, and logistics in Germany is incredibly hard. In addition, July is a holiday month, and the shutdowns for maintenance have already begun, so the mills can afford to lower scrap prices. Scrap sellers, on the other hand, are waiting for September for some signs of a [price] increase, but mills will all start again with full warehouses. A recovery will probably be seen towards the beginning of October, but now it is still too early to say. Let’s see what happens. Two very weak months are ahead," a market player commented.
