Demand rebounds on Germany steel scrap market and prices rise at start of year

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During the final months of 2022, demand for ferrous scrap from German steel mills was extremely weak. At the beginning of the new year, however, many mills are no longer reluctant to buy scrap and are signalling a rebound in demand. Thanks to the sharp rise in export prices at the turn of the year, scrap dealers were also able to increase their domestic prices for January.

However, the traders surveyed by EUWID say it is too soon to call this a trend reversal. The market is still characterised by major uncertainty regarding a number of macroeconomic trends and especially the strength of the steel sector in the near-term. Mills producing concrete reinforcing steel (rebar), in particular, have seen their sales drop in recent months as a result of the steep rise in construction costs and interest rates. Order books throughout the automotive sector are reportedly full, but carmakers and their suppliers have long been reluctant to call off the steel products ordered from mills because of the bottlenecks caused by shortages of other components....

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