Local German scrap prices continue to soften in August

The local German scrap market has continued to soften over the month of August amid a lack of decent demand from the local and export markets. With Turkey showing little interest in deep sea scrap prices, pressure has built up on all European collection prices and this has contributed to the sluggish trade during Europe’s holiday season.

Currently, scrap collection prices at EU-based export yards are in the range of €295-305/mt DAP Amsterdam and Belgium, moving up from the €300-305/mt DAP levels observed earlier this month. Market sources report that there are two buyers bidding at €285-290/mt DAP Amsterdam, but these levels do not attract large volumes. A German sub-collector said they have not been able to lower their collection prices. On the other hand, German sub-collectors believe that domestic scrap prices in Germany have more room to decline in September. One of them said prices will fall by €20-30/mt, while another said a drop of at least €15-20/mt is possible in the coming month.

According to the latest data provided by the Bundesvereinigung Deutscher Stahlrecycling-und Entsorgungsunternehmen e.V, in the first 20 days of August, scrap prices moved down by €1.2-14.2/mt month on month. Additionally, the year-on-year increase is in the range of €24.5-58.8/mt.

The prices are provided by Bundesvereinigung Deutscher Stahlrecycling-und Entsorgungsunternehmen e.V.are average prices for domestic transactions across Germany in the first 20 days of the given month.

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