In the middle of negotiations for the February scrap purchase cycle in Germany, mills are raising prices in a very wide range of €7-25/mt.
According to sources, besides the increases mentioned by SteelOrbis last week, one mill in the northern part of Germany is reported to have increased its purchase prices by €15/mt for all scrap categories, while another mill in the western part of the country has raised its prices by €10/mt, and a third mill in the southwest has paid €7-9/mt more compared to the previous month, depending on the scrap category. A large German producer, on the other hand, has granted increases of €20/mt, while another one is reported to have given unchanged prices.
No drops in scrap prices have been observed, but the upward trend seems to be very uneven depending on the mill and on individual needs.
A source on the traders’ side has also reported some struggles in finding enough scrap in the face of better demand compared to recent months. "I haven't seen Germany being so aggressive for a long time. However, I don't think this attitude is due to a more positive sentiment. I have the feeling that producers are very much living in the moment," he said, adding that logistical issues persist in the German market and especially when it comes to transport by truck to neighboring countries.
