Local scrap prices in Germany and Poland have followed a downtrend during February. The January steel production levels in Germany were higher than the numbers recorded during 2020, market sources report. There are some uncertainties in Germany about the relaxation of the lockdown measures and the numbers of Covid cases are still on the rise. Automotive production is recovering slowly, market sources state, adding that the full recovery to pre-pandemic levels may take approximately a year. The automotive segment is also known as a good source of high grade scrap. Local scrap demand in Germany is still lively, though one market player stated that scrap flow to export yards is stronger in the western regions of the country due to more attractive prices. No disruptions on the collection side have been observed. One supplier reported that they have received offers for E3 grade scrap at €325/mt delivered to Ghent, though they have rejected the offer as prices are set to move up further. A major scrap supplier in Germany expressed the view that domestic scrap prices will increase by at least €20/mt in the coming round of sales, adding that German steelmakers’ sales are also at good levels, supporting the scrap market.
According to the latest data provided by the German steel scrap recycler association (BDSV), in the first 20 days of February local scrap prices decreased by €29-36.1/mt on average month on month. Meanwhile, the year-on-year increase was €86.3-97.5/mt on average.
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: February 2021(€/mt) |
Price: January 2021 (€/mt) |
Price: February 2020 (€/mt) |
Monthly Change (€/mt) |
Annual change (€/mt) |
|
E1 - Old steel scrap |
283.3 |
315.7 |
195.6 |
-32.4 |
87.7 |
|
E2/E8 - New steel scrap |
306.8 |
335.8 |
209.3 |
-29 |
97.5 |
|
E3 - Heavy old steel scrap |
305.3 |
338.5 |
214.2 |
-33.2 |
91.1 |
|
E40 - Shredded scrap |
312.4 |
348.5 |
220.2 |
-36.1 |
92.2 |
|
E5M - Steel turnings |
262.7 |
296.6 |
176.4 |
-33.9 |
86.3 |
The average price levels recorded in the transactions concluded during February in Germany in specific regions are as shared below, all ex-works:
|
Grade |
Western Germany average price levels (€/mt) |
Northern and eastern Germany average price levels (€/mt) |
Southern Germany average price levels (€/mt) |
|
E1 - Old steel scrap |
289.6 |
292.4 |
275.5 |
|
E2/E8 - New steel scrap |
322.6 |
309.5 |
300.9 |
|
E3 - Heavy old steel scrap |
317 |
310.5 |
294.3 |
|
E40 - Shredded scrap |
- |
311.2 |
309.9 |
|
E5M - Steel turnings |
278.1 |
266 |
258.5 |
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
Meanwhile, prices in the local Polish market have decreased significantly in February by €140-158/mt month on month, with HMS I scrap prices moving down to €220-222/mt DAP. However, market players in the country have said that prices are expected to increase in the coming period, at least by €30/mt, as construction is also recovering and there is strong local demand in the Polish scrap market.