Having recorded significant price increases in April, the local German scrap market has followed the trend of the international market and moved down in May. Despite the fall recorded over May, several market players state that local scrap prices in Germany are far above export quotations, which had collapsed as Turkey remained out of the market for at least seven weeks. The initial expectations were signaling a €50-60/mt decline in May in the local German scrap market, while the reduction is now higher due to some German mills’ efforts to reduce their procurement prices by up to €100/mt towards the end of May.
“We are hearing that Turkish mills have started inquiries for imports, but there are still concerns that the local German scrap market will feel downward pressure since it is lacking back,” a German supplier commented, “We can see a further fall around €40/mt in June”. On the other hand, another German supplier said that, since local prices are more attractive for sellers and though there has been a significant decline observed through May, German scrap can be sold domestically. According to market players, the future trend of the local German market depends on the news to come from Turkey and where a clearer picture can be seen there in the coming month.
According to the latest data provided by the BDSV, in the first 20 days of May local scrap prices moved down by €64.3-88.5/mt month on month. Additionally, the year-on-year increase is now in the range of €46.8-130.7/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: May 2022(€/mt) |
Price: April 2022(€/mt) |
Price: May 2021 (€/mt) |
Monthly Change (€/mt) |
Annual change (€/mt) |
E1 - Old steel scrap |
410,4 |
498,9 |
342,0 |
-88,5 |
68,4 |
E2/E8 - New steel scrap |
503,7 |
568 |
373,0 |
-64,3 |
130,7 |
E3 - Heavy old steel scrap |
462 |
538,9 |
363,7 |
-76,9 |
98,3 |
E40 - Shredded scrap |
467,5 |
548,1 |
374,4 |
-80,6 |
93,1 |
E5M - Steel turnings |
360,6 |
425,4 |
313,8 |
-64,8 |
46,8 |
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
