It is still early to talk about new negotiations in the local German scrap market, but, according to some rumors coming from market sources, different trends are emerging.
In May, mill’s scrap purchase prices in eastern Germany experienced a major drop - of around €40/mt - and the first indiscretions indicate a stable movement for June’s round of purchases. In the western part of the country, however, there was already talk about downward pressure. This information, though, has not been confirmed at the time of publication. It is worth noting that an Austrian producer has already confirmed stable scrap purchase prices for June for all categories. Consequently, it is likely that scrap prices in the southern part of Germany will follow the same trend under its influence.
Concerning Italian imports from Germany, the first information coming from the market also indicates a stable or slightly upward movement in scrap prices, based on the rising transportation costs for deliveries by truck or wagon.
On the export side, local scrap collection prices to export yards declined to €250/mt DAP for HMS I/II 80:20, from last week’s €260/mt DAP for the same grade. As SteelOrbis previously reported, this downward trend might be a consequence of the high number of cargoes on offer from EU ports for deep sea scrap sale to Turkey, for which demand remains sluggish.