Expected price correction on German steel scrap market in February

Reticent purchasing by Turkish buyers
sent ferrous scrap prices lower in Germany.
24.02.2021 − 

The price rally on the German steel scrap market has been interrupted for now. After ferrous scrap prices rose by more than 50 per cent between October and January, there was – as traders had been expecting – a price correction in February. However, prices are not expected to decline further in March.

However, prices are not expected to decline further in March. The good order situation at the steel mills right now suggests that demand for scrap will remain buoyant, EUWID respondents say. They point out that scrap availability has also been very limited recently. As is often the case, the deciding factor will likely be the business with exports to Turkey.

Turkish mills’ reluctance to buy scrap in recent weeks was the main reason for the decline in ferrous scrap prices in the current monthly contracts signed between traders and German steel mills. Since mid-November, Turkey had been importing large quantities of scrap almost without interruption, thus driving scrap prices higher. But as of the middle of January, Turkish buyers started pulling back from the market. The export price fell sharply, making business unattractive for German traders.

The full report on the ferrous scrap market in Germany appears in the next print and e-paper issues of EUWID Recycling & Waste Management (04/2021) out on 24 February. Online subscribers can access the report immediately here:

Steel scrap Germany



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