Local scrap prices in Germany and Poland move up significantly

Tuesday, 22 December 2020 13:09:06 (GMT+3)   |   Istanbul
       

Scrap prices have increased in the German domestic market in December this year, following the rise recorded in November. Market players state that this increase in prices is the result of the shortage observed in the international scrap markets, while the winter conditions as well as the additional measures taken against the second wave of the pandemic have also negatively impacted the volume of supply. SteelOrbis previously reported that some suppliers were staying out of the market since small and medium-scale suppliers completed their scrap sales for 2020 in November as they aim to avoid paying more duties than necessary at the end of the year. Over the past month, it is observed that prices of all steel products and steelmaking raw materials have indicated significant rises all around the world and this has also supported the uptrend of the local German scrap market. Meanwhile, one market player drew attention to the fact that scrap sales to Turkey from Europe are not for December shipment, and so the impact of Turkey in this price rise in the local market is not so significant. However, domestic scrap prices in Germany are expected to increase further in January as the lack of supply is still an issue. Some say German mills cannot increase their prices beyond €315-320/mt delivered to mill. While market players think that there will be no problems meeting commitments for January shipments on the export side, with the widespread lockdowns and the mutation of the virus the shortage of supply may cause some problems for February shipments. Also, SteelOrbis has learned that European scrap suppliers have received demand from Mexico and Egypt.

According to the latest data provided by the German steel scrap recycler association (BDSV), in the first 20 days of December local scrap prices increased by €32.78/mt on average month on month. Meanwhile, the year-on-year increase was €36.78/mt on average.

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: December 2020 (€/mt)

Price: November 2020 (€/mt)

Price: December 2019 (€/mt)

Monthly Change (€/mt)

Annual change (€/mt)

E1 - Old steel scrap

238.3

202.3

207.5

+36

+30.8

E2/E8 - New steel scrap

254

218.6

214.4

+35.4

+39.6

E3 - Heavy old steel scrap

253.3

221.5

219.6

+31.8

+33.7

E40 - Shredded scrap

257.2

225.9

220

+31.3

+37.2

E5M - Steel turnings

214.6

185.2

172

+29.4

+42.6

 

The average price levels recorded in the transactions concluded during December in Germany in specific regions are as shared below, all ex-works:

Grade

Western Germany average price levels (€/mt)

Northern and eastern Germany average price levels (€/mt)

Southern Germany average price levels (€/mt)

E1 - Old steel scrap

242.7

253.2

225

E2/E8 - New steel scrap

257.1

262.9

246.3

E3 - Heavy old steel scrap

262.4

267.2

234.1

E5M - Steel turnings

227.5

223.5

209

E40 - Shredded scrap

-

265.3

247.1

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 increased by €40-50/mt month on month, with HMS I scrap prices moving up to €280-290/mt ex-works amid the shortage on the supply side and also due to the rises observed in Turkey’s import scrap quotations. The demand in the local Polish scrap market is still strong, market sources state, adding that local prices are expected to move up further in January by €10-20/mt.


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