Local German scrap market mostly moves up in April, except for E1 grades

Domestic scrap prices in Germany have generally moved up during April with the support of lower scrap supply. It is observed that higher grades have been in more demand as compared to lower grades, and so the price increase for higher grades was larger than the increase for the other grades. Additionally, E1 grade scrap, which is also largely goes abroad, have indicated a price decrease in April. This has been the result of sluggish demand from abroad. The export segment has not helped the local European scrap market this month. Turkey has generally stayed out of the market as steel demand in the country has remained on the weak side during April.

Market players believe there is some room for local European scrap prices to move down in May. One sub-collector said, “There is no positive expectation for Turkey’s scrap demand. On the contrary, the pressure on scrap prices is rising. I expect local European scrap prices to move down by at least €20/mt in May.” The bids received by another sub-collector have been in the range of €330-340/mt delivered to export yard. “I think prices may remain in this range, or soften slightly in the coming days. Though some collectors state they are inclined to hold on to their stocks to wait out this soft trend,” a market player reported. European producers are also expected to lower their scrap procurement prices in May. “A major European mill paid €373/mt delivered for E1 grade in April. A €30/mt decline in its procurement prices will mean €320s/mt delivered to export yards for sellers,” a source said.

According to the latest data provided by the BDSV, in the first 20 days of April, scrap prices moved up by €0.2-7.3/mt month on month, except of E1 grades which declined by €7.2/mt during April. Additionally, the year-on-year decrease is now in the range of €129.7-184.3/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).

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