The first discussions on scrap prices in Germany for purchases in May have begun this week.
Although the scrap market in Germany showed signs of weakness in 2025 due to the overall contraction of the steel segment and with crude steel production declining during the year, the latter has recovered slightly in the first quarter of 2026.
Consequently, scrap demand in the country has remained at overall stable levels, as confirmed by various market sources, and German steel production is expected to continue smoothly in May.
However, general market conditions are still showing an overall scarcity of demand compared to the usual levels, and the expected increases in scrap prices - which according to the initial rumors should be in the range of €5-10/mt - are mainly driven by the higher costs borne by market players.
"[Scrap] traders are optimistic about a recovery in scrap prices in May, as transport, energy and gas costs are rising. In addition, as the weather gets warmer, the water levels of the Rhine will drop, which will add more pressure on river transport costs," a source said.
"I don't think domestic conditions are suitable for a [scrap price] rise, but the push from external factors is too strong," another source said, adding, "I hope that the announcement of unchanged prices by [Austrian producer] will cool tempers a bit."
A major Austrian steelmaker has announced unchanged purchase prices for all scrap categories in May, while a producer in western Germany has announced an increase by €5/mt for old scrap and unchanged prices for other categories.
As far as the export market is concerned, no changes have been reported regarding collection prices of HMS I/II 80:20, which are still at around €300/mt DAP. Yesterday, May 5, a possible deal for export of scrap to Turkey by a major international trader based in Germany also surfaced in the market, but the information has not been confirmed at the time of publication.
