The German economy and the local scrap segment have been showing signs of a slight recovery towards the end of March. As anticipated in SteelOrbis’ report last week, scrap prices in the local market rose by an average of €15/mt due to a widespread shortage of scrap, but market participants now seem more optimistic for the coming month.
According to a German source, although scrap is still scarce in the local market, availability is slowly increasing, and demand for the material has improved both in the local market and in the export market, especially towards Italy.
Finished steel demand has not been bright in March, but, thanks to the new stimulus package for infrastructure announced by the German government, it will likely grow significantly in the coming months. German crude steel production also declined in March, amounting to 2.70 million metric tons, down 13.5 percent year on year but up 0.75 percent month on month.
Sentiments in the German scrap market seem slightly more optimistic, and the ifo Business Climate index for Germany rose in March to 86.7 points, from 85.3 points in February. Though it is still early to talk about a positive trend, indicators show that April will at least be a stable month.
“Market participants estimate that April’s outlook will be more positive, though it will be characterized by the Easter vacation period”, a local German source reported. April will be, in fact, a short month for Germany, as Easter vacations (18-21 April) will be followed by Labor Day (Thursday, May 1).
Finally, local collection prices for export yards are at €310-315/mt DAP for HMS I/II 80:20 and around €330/mt DAP for bonus scrap.
According to the latest data provided by the Bundesvereinigung Deutscher Stahlrecycling-und Entsorgungsunternehmen e.V, in the first 20 days of March scrap prices moved up by €12.9-20.0/mt month on month. On year-on-year basis, scrap prices indicated declines ranging from €13.9/mt to €31.3/mt.
The prices are provided by Bundesvereinigung Deutscher Stahlrecycling-und Entsorgungsunternehmen e.V. and are average prices for domestic transactions across Germany in the first 20 days of the given month.
| Scrap grade | Price: March 2025 (€/mt) | Price: February 2025 (€/mt) | Price: March 2024 (€/mt) | Monthly Change (€/mt) | Annual change (€/mt) |
| E1 - Old steel scrap | 285.1 | 272.2 | 307.3 | +12.9 | -22.2 |
| E2/E8 - New steel scrap | 330.0 | 314.8 | 343.9 | +5.2 | -13.9 |
| E3 - Heavy old steel scrap | 326.0 | 306.0 | 343.8 | +20.0 | -17.8 |
| E40 - Shredded scrap | 329.9 | 313.9 | 349.2 | +16.0 | -19,3 |
| E5M - Steel turnings | 274.9 | 260.0 | 279.2 | +14.9 | -31,3 |
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