Local scrap prices increase in Germany and Poland

Although domestic scrap prices in Germany and Poland have increased month on month, some market sources state that prices have indicated some corrections over the past month as mills decided that the initial rises were unnecessarily high under the current market conditions. Some sources state that collection in the local German scrap market is down by 11 percent as compared to the December-January period one year earlier. The same sources state that, even though no shortage of supply is observed, they expect the pace of collection activity to be similar in February, i.e., lower year on year by around 10 percent. One European supplier stated that small and medium-scale sellers have returned to the market with some scrap tonnages on hand as they held on to the material due to their expectations of a further rise in quotations. This has resulted in increased allocation of scrap. Some sources in Germany think that the decreasing trend in the global scrap market will not persist. Also, one player stated that the lower international scrap prices have given an advantage to sellers, as their previous sales were closed at higher levels.

According to the latest data provided by the German steel scrap recycler association (BDSV), in the first 20 days of January local scrap prices increased by €83.54/mt on average month on month. Meanwhile, the year-on-year increase was €104.96/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).

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

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 €80-90/mt month on month, with HMS I scrap prices moving up to €360-380/mt ex-works. Both supply and demand in the local Polish scrap market are high, according to market sources, and a decrease in quotations of around €30-40/mt is expected in the coming period.