At the beginning of April negotiations in the local German scrap market, mills are starting to get ready for possible higher levels being asked by local scrap suppliers.
After an overall quiet market in March and declining prices for scrap grades available for exports, at the beginning of April scrap suppliers in Germany are starting to ask for higher prices from both mills and export yards, as they are struggling with higher transport costs and facing tighter competition with Turkey’s renewed interest in imports at the end of March and the beginning of April.
According to market reports, two of the main mills in Germany have closed their initial contracts at unchanged or slightly higher prices, but most German producers are still negotiating volumes for this month.
A third mill is reported to be buying E1 at €295/mt delivered and it has raised its scrap purchase prices by €5-10/mt or slightly more in its April purchase prices. However, it is still too early in the month to define a more precise market trend.
In the meantime, Italian sources have reported that German suppliers are asking around €10/mt more for scrap deliveries in April, citing higher transport costs in the wake of oil price hikes.
As for exports, sources have reported HMS I/II 80:20 scrap prices at German ports at €295-300/mt DAP, up €8/mt on both ends of the range compared to last week, and a Germany-based scrap seller reported yesterday, April 8, that they have concluded sales to an export yard with prices in the range of €302-303/mt DAP, showing continuous upward pressure.
