Ferrous scrap has become more expensive in Germany in August. This was particularly the case in the north of the country, where a few steel mills were ordering more material again after holding back on placing orders in July. At the same time, they had to deal with competition from the export market due to their location near the coast.
Scrap merchants think that prices will continue to have robust support in the weeks ahead and do not tend to think that prices will fall. However, there is still a great deal of uncertainty because of the Covid-19 pandemic and the economic downturn.
Strong scrap demand from Turkey
Turkey was displaying particularly strong demand for scrap. "Merchants were buying like they used to before Covid,” one respondent commented. Turkish steel manufacturers were enjoying good sales opportunities at the moment, especially in Asia, since China needed all of the steel it was making to meet domestic demand. It was hard to say whether this was a flash in the pan or the start of business returning to the old normal.
The skies have brightened a little on Germany’s steel market, too, merchants said. Many sources are reporting that steel processing industries want to ramp up production more again. At the same time, recyclers cautioned against premature optimism. "We have to wait and see how well we manage to raise the tempo,” one respondent commented. It was unclear whether September would show the future direction on the steel and ferrous scrap market, he added.
The full report on the ferrous scrap market in Germany will appear in the next print and e-paper issue of EUWID Recycling & Waste Management (17/2020) out on 18 August. Online subscribers can access the report immediately here:
