In line with SteelOrbis’ expectations outlined in its previous report, domestic scrap prices in Germany have decreased further in August due to slower demand both in the local and export markets. Market players were already getting ready for a downward correction in domestic scrap prices at the end of July, citing their expectations for a lack of demand in Europe’s holiday season. Having said that, the return of Turkey to the international scrap market has supported the European scrap market somewhat, preventing domestic scrap quotations in Germany from falling uncontrollably. “This decline in prices is lower than we anticipated, and it is better than nothing,” a Germany-based player said.
For the coming month, many players believe that supply tightness will play a stronger role. “Collection prices across the board are not falling. It is not falling for us [sub-collectors], and it is not falling for the collectors in the streets amid ongoing inflation and the unofficial recession. People are unwilling to collect scrap from scratch if they are not paid enough,” a German sub-collector reported. Additionally, against the backdrop of slower manufacturing in the EU region, the availability of higher grades such as bonus and busheling is also on the low side. Another German source said that the gap between HMS I/II 80:20 and premium grades is widening, adding “This cannot be prevented since generation is the main problem.” Currently, collection prices for HMS I/II 70:30 in Amsterdam and Belgium are at around €290/mt DAP, while bonus scrap quotations are at a minimum of €315/mt DAP Belgium.
According to the latest data provided by the BDSV, in the first 20 days of August, scrap prices moved down by €1.5-15.9/mt month on month. Additionally, the year-on-year decrease is now in the range of €2-50.3/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: August 2023(€/mt) |
Price: July 2023(€/mt) |
Price: August 2022 (€/mt) |
Monthly Change (€/mt) |
Annual change (€/mt) |
|
E1 - Old steel scrap |
276.6 |
278.1 |
295.3 |
-1.5 |
-18.7 |
|
E2/E8 - New steel scrap |
302.4 |
321.4 |
352.7 |
-19.0 |
-50.3 |
|
E3 - Heavy old steel scrap |
300.5 |
316.4 |
326.1 |
-15.9 |
-25.6 |
|
E40 - Shredded scrap |
307.4 |
316.1 |
333.1 |
-8.7 |
-25.7 |
|
E5M - Steel turnings |
223.8 |
233.9 |
225.8 |
-10.1 |
-2.0 |
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