In March, ferrous scrap prices in Germany rose for the third month in a row. The main driver of the upward price trend was high demand from Turkish mills, which are stocking up on scrap in advance of the planned rebuilding efforts in regions destroyed by February’s devastating earthquake. German steel producers were therefore forced to raise prices too. But the domestic price increase was smaller than on the export market, as producers here have relatively subdued demand for scrap. Moreover, the steel market in Germany and neighbouring countries is very uneven. Production capacity utilisation rates, sales volumes, order backlogs and scrap inventories could vary markedly from mill to mill, traders said during the monthly EUWID survey.
“The market is very inconsistent right now. Some are buying scrap, some are not. And every mill is buying at a different price and time,” said one respondent, summarising the laboured negotiations with the steel industry. Once again in March, steel producers’ scrap demand varied considerably from mill to mill, depending largely on what kind of steel products they make. Producers of concrete steel in particular were suffering from the recent slump in construction activity. According to a new survey by the ifo Institut in Munich, expectations for the residential construction sector are currently weaker than ever before.
In addition to the business with Turkey, Italy also offered good sales opportunities for German scrap traders in March. Italian mills rushed into the market early in the month with increased scrap demand and price mark-ups, say traders from southern and southwestern Germany. Steel mills in Luxembourg also reacted quickly to the rising prices for Turkish exports....
