Local scrap prices in Germany and Poland follow diverse trends

Wednesday, 28 April 2021 15:52:46 (GMT+3)   |   Istanbul
       

Over the past two weeks, local scrap prices in Germany have been moving upwards, SteelOrbis understands. Market sources state that finding finished steel products, particularly flats, is hard in Germany, while some flats-consuming industries such as the automotive sector are having difficulties receiving flat steel orders placed in January and February. Some Germany-based scrap suppliers state that flat producers’ capacity utilization rates are high, leading them to accept higher scrap quotations. Even though players do not exclude the possibility of a slight fluctuation in prices - i.e. €5-10/mt - in May, they do not expect a sharp decline. Meanwhile, firm bids from Scandinavian countries for German scrap are at very good levels, SteelOrbis understands. There has also been demand received from South Korea, Vietnam and South America for German scrap. Meanwhile, the water levels of the rivers in Germany are once again lower, causing shipment costs to increase. Rivers play a major role in logistics for scrap in Germany. One of the biggest suppliers in the region stated that German steel mills are planning their own transportation and that the increase in freight rates is not a problem for sellers to the local market but that for sellers to export markets this increase cannot be ignored. Additionally, scrap supply is still tight, suppliers report, adding that they are struggling to keep up with demand. Again one scrap supplier stated that the low scrap supply is expected to have some impact throughout the year. Meanwhile, Deutsche Bahn-German Railways has started to offer very attractive prices nowadays and for some regions transporting by railway has become more advantageous as compared to river transport. Also, due to the renewal of the railway system in Germany, rail scrap supply has increased visibly, market sources state.

According to the latest data provided by the BDSV, in the first 20 days of April local scrap prices in Germany mostly increased by €0.6-6/mt on average month on month, though E2/E8 grade scrap quotations decreased by €1.4/mt in this period.

Prices are average prices for domestic transactions across Germany in the first 20 days of the given month. The prices are provided by Bundesvereinigung Deutscher Stahlrecycling-und Entsorgungsunternehmen e.V. (BDSV).

Scrap grade

Price: April 2021(€/mt)

Price: March 2021(€/mt)

Monthly Change (€/mt)

E1 - Old steel scrap

316

310

+6

E2/E8 - New steel scrap

338

339.4

-1.4

E3 - Heavy old steel scrap

336.5

332.8

+3.7

E40 - Shredded scrap

345.7

345.1

+0.6

E5M - Steel turnings

292

287.1

+4.9

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

Meanwhile, prices in the local Polish market have almost remained stable month on month, with HMS I scrap prices moving down from €360/mt DAP to around €355/mt DAP. The Polish scrap market is quiet, market sources state, expectations of players vary. Some expect local scrap prices to move up by €10-20/mt in the coming month, while others think that is only possible for prime grades as prices of HMS grades are stable. A similar situation is observed for mills. Some are willing to conclude new contracts, while others have enough inventories for now. Suppliers are trying to fulfill their commitments from previous contracts. Meanwhile, SteelOrbis has learned that China is actively showing an interest in buying scrap from Poland, though no actual deal has yet been voiced by market players.


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