Most market players have reported unchanged scrap purchase prices in Germany while monthly negotiations are continuing. The market fundamentals have not changed substantially, so there have been almost no variations in scrap prices either.
In contrast with what local scrap dealers were hoping in Germany, only one major steel producer in the local market has increased its scrap purchase prices, by €10/mt, whereas the others are reported to have maintained stable prices. Moreover, according to one market source, a couple of mills - one of which is based in the southwest of the country - have announced that they will close their warehouses and stop receiving deliveries of scrap at the end of this month.
A scrap trader commented, “The real issue is not about selling scrap. It is about deliveries. There are no trucks or wagons available and delays are accumulating. We still have some volumes from September contracts to be delivered.”
As SteelOrbis has reported on various occasions, logistics in Germany and especially from Germany to Italy and back remain a major issue for market players.
A source at an Italian steel mill stated that he has bought regularly from Germany this month, adding, “Deliveries are an issue, it is true, but most difficulties exist for spot contracts. If you are a regular customer, they may struggle to find a truck by the end of the month, but it’s no big deal”.