Last week’s scrap price increases have been confirmed in the local German scrap market following negotiations. Scrap purchase prices of mills have increased by €5-10/mt all over the country, amid low scrap availability and a surprisingly better demand from producers.
In the finished steel segment, demand for finished products is still not lively. The construction, automotive and manufacturing sectors are not in good shape, so much so that, according to media reports, some major companies are planning job cuts. In addition, energy prices and scrap purchase prices are still on the rise, causing higher production costs for mills. Nonetheless, scrap demand “is acceptable in spite of the challenges”, as a local scrap trader in Germany said, adding, “Mills agreed to pay more for scrap. But paying more does not ensure you higher volumes, as [scrap] availability does not change. Supply is still slow.”
Consequently, both in the northern and in the eastern part of the country, scrap purchase prices from mills are up €5-10/mt, whereas in the southwest there were higher increases, by €10/mt and more, probably due to the influence of neighboring countries - France and Luxembourg - that registered a €10-20/mt rise in monthly negotiations. In the south, increases were more moderate, by around €5/mt. According to some sources, however, mills will not be able to sustain this rising trend for long. “German EAFs are in a hard position financially. Steel demand is not recovering, hence mills are in no shape to increase their scrap purchases. While [scrap] prices have increased this month, we are very close to the peak if not there already,” a source commented. On next month’s perspective, some traders hope for stability and do not believe there will be further price hikes, whereas others think that scrap prices will begin a downward trend, also following Turkey’s demand for scrap, which “is not enough to support the current levels”, the source concluded.
As for exports, it seems that scrap yards are still paying €305-310/mt DAP for HMS I/II 80:20, but, according to some rumors, this level seems to have decreased a little. This information, although, was not confirmed by the time of publication. Sources also believe that mills will buy lower quantities of scrap in March, because the finished steel demand will not allow significant scrap consumption, and their scrap yards are full. Hence, it is likely that scrap flow to export yards will increase slightly in March.
According to the latest data provided by the Bundesvereinigung Deutscher Stahlrecycling-und Entsorgungsunternehmen e.V, in the first 20 days of February scrap prices moved up by €9.4-11.9/mt month on month. On year-on-year basis, scrap prices indicated declines ranging from €30.5/mt to €56.2/mt.
The prices are provided by Bundesvereinigung Deutscher Stahlrecycling-und Entsorgungsunternehmen e.V. and are average prices for domestic transactions across Germany in the first 20 days of the given month.
Scrap grade |
Price: February 2025 (€/mt) |
Price: January 2025 (€/mt) |
Price: February 2024 (€/mt) |
Monthly Change (€/mt) |
Annual change (€/mt) |
E1 - Old steel scrap |
272.2 |
261.3 |
325.4 |
+10.9 |
-53.2 |
E2/E8 - New steel scrap |
314.8 |
305.4 |
358.1 |
+9.4 |
-43.3 |
E3 - Heavy old steel scrap |
306.0 |
301.2 |
358.9 |
+4.8 |
-52.9 |
E40 - Shredded scrap |
313.9 |
302.0 |
370.1 |
+11.9 |
-56.2 |
E5M - Steel turnings |
260.0 |
250.3 |
290.5 |
+9.7 |
-30.5 |
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
