The upward trajectory of the German steel scrap market has held for the second month in a row, buoyed by strong international demand. Business on the domestic market has also been surprisingly strong. Integrated steel mills in Germany had some time ago reduced scrap purchasing to a bare minimum and primarily covered the remaining requirements with their own revert scrap, but are now beginning to purchase scrap on the market again. Other positive signals include a steel mill ending its short-time work schedule.
The main driving force, however, is the current Turkish appetite for scrap. Business with Italy is reportedly good as well, at least in respect to the volumes being shipped. India also is said to be ordering scrap from Germany, despite climbing freight prices. Mills in Turkey seem to be benefitting from a domino effect touched off in China: Following the decision by the Central Committee of the People's Republic to raise steel prices, which led to some existing contracts not being fulfilled, Asian customers have been looking for substitute volumes elsewhere – including Turkey. According to EUWID sources, the situation has resulted in an additional 600,000 tonnes of steel ordered from Turkish producers. Steel demand on the Turkish domestic market has also markedly increased, reports indicate.
The full report on the German ferrous scrap market including the price table appears in issue 9/2016 of EUWID Recycling and Waste Management on 27 April 2016. Online subscribers can already access it here:
