Domestic scrap prices in Germany have moved up further in the month of March. The uptrend was in line with expectations, mostly driven by the positive sentiment in Turkey. Market sources admit that they had anticipated a price increase for scrap export quotations, in line with the market leader Turkey citing the Turkish government’s statements about quickly rebuilding the cities impacted by the devastating earthquakes in southeastern Turkey. “The export segment has pushed local scrap prices up as well. We all thought that prices would go up further and hence scrap inventories on hand have also increased during March with most players waiting for better prices,” a German scrap supplier commented.
Currently, the fundamentals of the local German scrap market are similar to last month. Higher interest rates in the country are taking their toll on trading, with particularly the construction sector being hit. On the other hand, a correction is expected by some players. One scrap seller said, “Crude oil prices are decreasing, signaling slower trading which may end the rises in interest rates. If that is case, scrap supply may also move up.” The local German scrap market is expected to move down in April, due to this expectation and the downward pressure coming out of Turkey right now. As of today, March 22, collection prices for HMS I/II 70:30 scrap in Amsterdam and at Belgian ports are at €365/mt, while for HMS I/II 80:20 and bonus grades in Belgium prices are at €375/mt and €380/mt respectively, all on DAP basis. These levels indicate that export yards are reducing their bids for collection and are currently not aggressive in scrap procurement. “We are planning to empty our stocks for now, not that we had large tonnages on hand to begin with,” a sub-collector in Germany reported, adding that they are expecting downward pressure on quotations from now on.
According to the latest data provided by the BDSV, in the first 20 days of March scrap prices moved up by €20.6-30.11/mt month on month. Additionally, the year-on-year decrease is now in the range of €114.5-152.7/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: March 2023(€/mt) |
Price: February 2023(€/mt) |
Price: March 2022 (€/mt) |
Monthly Change (€/mt) |
Annual change (€/mt) |
E1 - Old steel scrap |
357.4 |
328.3 |
493.0 |
29.1 |
-135.6 |
E2/E8 - New steel scrap |
381.7 |
361.1 |
534.4 |
20.6 |
-152.7 |
E3 - Heavy old steel scrap |
384.4 |
357.1 |
517.6 |
27.3 |
-133.2 |
E40 - Shredded scrap |
397.8 |
367.7 |
525.5 |
30.1 |
-127.7 |
E5M - Steel turnings |
288.4 |
267.6 |
402.9 |
20.8 |
-114.5 |
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