Local scrap prices in the German market at the beginning of January seem to be moving up slightly, though some sources claim prices have been stable compared to December. However, any upticks in prices are not due to better demand. On the contrary, winter weather conditions are making peddlers' work very hard and demolitions almost impossible, leading to reduced scrap availability, while at the same time German mills are buying their normal tonnages.
A German mill based in the north of the country has just increased its scrap purchase prices by €10-20/mt and is seeking to buy more than usual, and another mill in southwest Germany has also increased its price, with its scrap purchase price standing at €275/mt delivered to mill for HMS I/II 80:20, according to one source.
One of the biggest mills in Germany tried to lower their scrap purchase prices in December and then for January, but now they have increased them again by €5-10/mt for E1 scrap, as the local scrap market is showing signs of upward movement, and the availability of this grade is quite scarce compared to higher grades.
As for prices to export yards, one source said he believed that €290-295/mt DAP is the lowest level possible, even though some exporters were aiming at €270-275/mt DAP. At the time of publication, though, the only confirmed deal was closed at €285/mt DAP, but at the end of last week. On the other hand, scrap flows to export yards are increasing, because suppliers are pushed by the favorable euro-dollar exchange rate and by a general sluggishness of local scrap demand. Some exporters, however, are pessimistic as regards expectations for February.
The overall economic situation in Germany is not so positive, and local companies are looking for partnerships to increase their capacity utilization rates, because the current 50-60 percent rates are not considered workable in terms of profits.