Local scrap markets in Germany and Poland showed no changes this week, and at the end of the monthly negotiations for scrap purchase contracts by mills, prices seem to have ended their descent at an average decline of €10-13/mt in Germany and of €10/mt in Poland – compared to last month.
Due to summer holidays, market players in Germany have largely remained out of the market. Monthly contracts have now been concluded and scrap demand from mills has remained slow. Logistics continue to be an issue, as there is a lack of truck availability for scrap delivery and roadblocks in summer months will not help the situation.
Although new official prices for scrap in Germany will only be released next week, it is safe to assume that a drop of at least €10/mt will be reported for all grades.
It is also worth mentioning that, as reported by SteelOrbis, Germany's largest steel producer thyssenkrupp is planning major structural changes with the aim of streamlining its steel branch. These include a reduction in production capacity, workforce cuts and increased investments for the modernization of some plants.
The Polish scrap market has also remained silent this week, and no movement has been reported by players. Collection prices at export yards for HMS I scrap have not changed since last week and still stand at €240-250/mt DAP.