SteelOrbis has learned that the scrap flow in the local German scrap market is slow due to the ongoing summer holidays and surely amid the economic impact of the Covid-19 virus. While the holiday season causes a slowdown in trade, some German mills and foundries have already returned to the market, seeking for scrap, according to some market players. This initially caused expectations of a price increase in the market –slight by some, at around €10/mt by others -, particularly for September. However, some mills have taken a step back in the middle of the current week and started to exert pressure on local prices.
In western Germany, a supplier states that the highest firm bids for HMS I/II 80:20 scrap were received from Antwerp at €200/mt ex-works Aachen, while two deals for steel turnings (E5 grade scrap) have been concluded at €170/mt ex-works Aachen-Düren.
Meanwhile in northern Germany, another supplier states that domestic scrap collection prices have moved up approximately €10/mt during August. According to sources, shredded scrap (E4 grade) offers in the north are at around €225-230/mt ex-works, steel turnings at €185-190/mt ex-works and HMS I/II 80:20 scrap at €210-220/mt ex-works, all in the Hamburg region. However, some other sources state that the upper end of these price levels are not acceptable, but adds that the prices for shredded scrap are above €210/mt FOB.
The average price levels recorded in the transactions concluded during August in Germany are as shared below - all ex-works -:
Grade |
Western Germany average price levels (€/mt) |
Nothern and Eastern Germany average price levels (€/mt) |
Southern Germany average price levels (€/mt) |
E1 grade |
193.10 |
192.50 |
175.20 |
E2/8 grade |
210.10 |
205.30 |
200.10 |
E3 grade |
211.10 |
208.60 |
192.30 |
E5 grade |
179.10 |
171.60 |
163.30 |
E4 grade |
- |
211.40 |
200.50 |
Additionally, as Germany transports significant scrap tonnages through rivers, the lower water levels in rivers during summer are resulting in higher freight. Local yards are quiet relaxed as scrap flow slows, unwilling to accept lower offers received from mills or to negotiate. Market sources state that the possibility of a second wave and lockdown decision is leading German suppliers to be cautious.
Meanwhile, benchmark HMS I grade scrap prices in Poland are at €221-232/mt ex-works, according to market sources, indicating a €20/mt increase month on month. Market sources state that the increase in prices is the result of the slower domestic flow, adding that the high levels reached in Turkish import scrap market had an impact on the supply.
