Steel scrap prices have increased again on the German market in May. Recyclers interviewed by EUWID attributed the rise in part to an uptick in export business to Turkey in the second half of April. Even after sales eased somewhat again in the first weeks of May, the market remained active thanks to solid domestic demand. Most steel mills in Germany and neighbouring countries had good demand for scrap and increased their purchase prices, according to recyclers and merchants.
However, they were finding that selling scrap was more straightforward than actually getting it off the yard. A whole raft of EUWID sources reported that they had experienced major logistical troubles, with lorry capacity in especially short supply in many areas. Companies also complained that much higher transport costs were squeezing their margins.
Nevertheless, the tone was upbeat. "Scrap is in demand, prices are fine and business is fun again," one merchant said, summing up the state of the market in May. The additional increases in prices paid by steel mills, which were mostly in the €5-15 per tonne range compared with April, certainly came as a surprise. With the number of working days in May reduced by public holidays, recyclers had actually expected weaker demand from the steel-processing industry, lower steel mill output and thus a rather more subdued appetite for scrap. At the end of the day, though, almost all mills were active in the market with solid scrap demand.
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