As anticipated by market players, domestic scrap prices in Germany have decreased further in July due to the slower demand both in local and export markets. The downward pressure on scrap prices has increased in the international market, with slower industrial activity in the EU pushing scrap prices down in July.
For the month of August, sentiments are not changed much in Germany. Market players still expect prices to move down further. “The holidays will start in August, and we see some major producers plan to be out of the market longer this year,” a German source commented. Additionally, Turkey’s demand for scrap is also slower at present. While in the holiday season scrap collection in the EU is usually disrupted, this time players are not sure if the holiday season will be enough to keep prices stable. “I believe a downward revision cannot be prevented,” an EU-based source said. A second source in the EU said prices will decline by €15-20/mt during August. But not much positivity is observed amongst players.
According to the latest data provided by the BDSV, in the first 20 days of July, scrap prices moved down by €7.1-21.4/mt month on month. Additionally, the year-on-year decrease is now in the range of €12.9-29.7/mt for some grades, though other grades indicated an increase for the first time in months, rising by €0.6-8.1/t. 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: July 2023(€/mt) |
Price: June 2023(€/mt) |
Price: July 2022 (€/mt) |
Monthly change (€/mt) |
Annual change (€/mt) |
|
E1 - Old steel scrap |
278,1 |
285,2 |
291,0 |
-7,1 |
-12,9 |
|
E2/E8 - New steel scrap |
321,4 |
331,6 |
351,1 |
-10,2 |
-29,7 |
|
E3 - Heavy old steel scrap |
316,4 |
335,7 |
315,8 |
-19,3 |
0,6 |
|
E40 - Shredded scrap |
316,1 |
337,8 |
332,9 |
-21,7 |
-16,8 |
|
E5M - Steel turnings |
233,9 |
246,3 |
225,8 |
-12,4 |
8,1 |
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