With the Ascension and Pentecost holidays in Germany this month, respectively on May 14-17 and May 24-25, the German scrap market has accelerated its pace of activity in order to conclude scrap deals before these dates.
In fact, most mills in Germany have surprisingly decided to increase their scrap purchase prices, trying to secure volumes before the holiday period. Demand from steel producers is reported to be at a good level, steel production is continuing and finished steel prices are also on the rise.
“It seems that, unexpectedly, things are starting to move in the German market after all. Prices appear to be increasing by around €10-15/mt, whereas at the beginning it had been assumed that prices would remain unchanged. Most scrap dealers would have been satisfied with this,” a local scrap seller commented.
More specifically, two producers in the eastern part of Germany have maintained their scrap purchase prices unchanged, probably because the water levels in the Rhine have increased logistics costs, for which they are trying to compensate by keeping scrap prices unchanged. In Luxembourg, however, the main producer has increased its scrap purchase prices by around €10/mt this month, even though there are different variations depending on the seller, ranging from €5/mt to €12/mt. One producer from the west of Germany has also increased its scrap purchase prices, by around €7-10/mt, and only one producer in the west has increased them by €15/mt this month.
Scrap collecting sources have not reported difficulties in finding material this month, but logistics (by river, railways and roads) remain a considerable issue. A shortage of rail wagons, low water levels and high fuel costs are still causing problems for operators in the German scrap market.
As for exports, scrap prices at ports remain stable in a range of €295-300/mt DAP for HMS I/II 80:20, which is considered acceptable by the market. As long as Turkey’s imports remain stable, this value may continue to fluctuate in a narrow range.
