The ferrous scrap markets have overcome the initial shock of the outbreak of war in Ukraine, but the general unease continues. Market participants are still coming to terms with the economic fallout of the war and trying to minimise risks. This means they are taking things day by day and both scrap traders and steel mills are reluctant to build larger inventories.
Nevertheless, German steel mills did have some pent-up demand after weak purchasing in March, so scrap prices ticked higher again in April despite a feeble export market. However, this means prices now have even further to fall when the market reverses course. And a correction – potentially a big one– was coming eventually, industry experts were certain....
