SteelOrbis has observed that the local German scrap market is following an uptrend in terms of prices amid the strong demand received from local and foreign mills.
According to a major scrap supplier, domestic E3 grade scrap prices in Germany have increased to €405-410/mt ex-works from the average €363.7/mt levels recorded in May. Additionally, E1 scrap prices in the country are currently at €375-380/mt ex-works, while E8 scrap prices are in the range of €410-420/mt ex-works. Local E2 scrap quotations are €420/mt ex-works and above, SteelOrbis understands.
One market player active in Germany’s western regions stated that they have received bids from local mills and that levels have increased from €410/mt ex-works recorded on Friday, June 11, to €420/mt ex-work for E3 grade scrap. The same German scrap seller stated that they have received firm bids from Belgium for E3 grade scrap at €380/mt ex-works. A sale from western Germany to France was done on Friday for steel turnings at €360/mt ex-works, indicating a sharp €30/mt rise from the bids received from the same region by the seller a week ago.
The sharp increase observed in the local German scrap market is explained by the availability problems experienced in the market in addition to strong demand. German steel producers are seeking large tonnages and some big mills are reportedly increasing their purchase prices without voicing this publicly. Market players believe that the current price levels are sustainable at least until July. Some expect further increases in local and export prices in July, while others are more cautious - pointing to European mills’ holidays in the coming month.