Local prices in the German market have followed the uptrend of the European and international markets, with scrap prices in new monthly deals rising by a range of €10-20/mt.
The overall market scenario has not changed. The scrap quantities available are still low, and finished steel demand remains sluggish both from the local and export markets. According to sources, mills are operating at around 70 percent of their capacity and the low scrap availability is - so far - sufficient for the small sales volumes of finished steel products.
Moreover, a major local mill in the eastern part of Germany has stopped production at one of its plants, and another German producer, Salzgitter, declared force majeure this week. Due to a fire at one of its hot rolling mills on February 28, the company will not be able to produce at full capacity until repair works are completed.
A German mill located in Thuringia raised its local scrap purchase prices by around €20/mt, whereas another one in Bavaria granted increases of €15-20/mt. Sources believe, though, that in the near future “they may want to reduce the [scrap purchase] prices a little again or at least the [purchased] quantity, because exports cannot react so aggressively at the moment due to the strong euro,” as one source commented.
Collection prices for export yards, in fact, marked a €5/mt decline week on week and they are now standing in the range of €300-305/mt DAP for HMS I/II 80:20.
Ex-Germany scrap prices to Italy, instead, marked a rise, and they were reported at €380-385/mt for E8C, around €360/mt for E8, around €350/mt for E3, €330-335/mt for E1 and €325-330/mt for E5. All prices are delivered to mill.