It was expected and yet still a surprise: German ferrous scrap prices largely stayed the same in March, broadly in line with the outlook given by most market players responding to EUWID’s last survey in February.
Given the military attacks launched by the US and Israel against Iran and the resulting spike in energy prices, recyclers contacted by EUWID still expressed surprise. They had assumed that steelmakers would push much harder for reductions in scrap prices during March negotiations.
In general, demand from mills was described as good. Arisings, which had increased due to the spring weather, could be sold without difficulty despite softer export business with Turkey, albeit at margins which sellers consider unsatisfactory.
Recyclers reported that most German steel mills bought scrap in March at prices unchanged from the previous month. Insiders reported only small price reductions and trimming of price peaks in isolated cases.
In Luxembourg, where prices had bucked the wider trend by remaining unchanged in February, March brought price increases. As a result, the East-West price differential seen the month before on the German market has largely disappeared. "Prices have converged again," one trader commented.
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