Despite the expectations of a more stable trend in June, domestic scrap prices in Germany generally moved down during the month. Amid slower demand coming from European scrap buyers along with the lower price levels recorded in Turkey, German scrap sellers decided it was time to sell some of their stocks ahead of the holiday season in order to make a profit.
For the month of July, market players believe there is still room for a decline in prices. A German sub-collector stated, “Most European steel producers will start their holidays in July, so we will not receive much inland demand. Depending on the demand coming out of Turkey, export yards will exert pressure on scrap prices. I believe this downward pressure may be accepted due to the overall stagnant demand.” An Amsterdam-based scrap exporter’s bids for HMS I/II 80:20 scrap are at €300/mt DAP and some German scrap suppliers consider this to be workable in the short term. According to one supplier, “Although scrap flow to yards at this price level is not great right now, in the short term some sellers may decide it is time to cut their losses. There are some scrap suppliers with higher inventory levels that need to be lowered.”
According to the latest data provided by the BDSV, in the first 20 days of June, scrap prices moved down by €16.5-23.8/mt month on month. Additionally, the year-on-year decrease is now in the range of €22.5-64.7/mt. 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: June 2023(€/mt) |
Price: May 2023(€/mt) |
Price: June 2022 (€/mt) |
Monthly Change (€/mt) |
Annual change (€/mt) |
|
E1 - Old steel scrap |
285.2 |
302 |
322.2 |
-16.8 |
-37.0 |
|
E2/E8 - New steel scrap |
331.6 |
351.1 |
396.3 |
-19.5 |
-64.7 |
|
E3 - Heavy old steel scrap |
335.7 |
359.5 |
358.2 |
-23.8 |
-22.5 |
|
E40 - Shredded scrap |
337.8 |
360.2 |
369.3 |
-22.4 |
-31.5 |
|
E5M - Steel turnings |
246.3 |
262.8 |
272.4 |
-16.5 |
-26.1 |
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