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Ferrous scrap correction driven by exports and material scarcity


Steel scrap prices jumped in November.
25.11.2019 − 

In an about-face that caught everyone by surprise, German ferrous scrap merchants saw their prices rebound in November. The bounce came after ferrous scrap prices had been more or less in free fall in September and October. However, nearly all EUWID sources believe that the reversal in the price trend was the result of "export-related factors”, coupled with a growing scarcity of scrap. This turn of events had done nothing to alter the fundamentally recessionary mood, as the German steel recycling association BDSV's recent member survey confirmed.

"It seems that there are only two options at the moment: going full throttle or slamming on the brakes,” one merchant remarked to EUWID when describing recent developments on the ferrous scrap markets. November’s jump in prices was reportedly prompted by much stronger demand from Turkey. Turkish steelworks were said to be enjoying good export opportunities for their products again on the back of rising steel prices in China, in addition to stronger domestic demand.

Our online subscribers can access the full report immediately here.

The full report on the steel scrap market in Germany also appears in EUWID Recycling & Waste Management 24/2019 published on 27 November.

 

 

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