German industry is struggling in the face of sky-high energy costs. Energy-intensive sectors such as steelmaking are particularly hard hit, but upstream and downstream companies along the value chain are also finding themselves in trouble. Due to plant shutdowns and production cutbacks at steel mills, German scrap traders are seeing a collapse in demand. Speaking with EUWID this month, traders warned that they are heading towards a "massive crisis" in sales volumes.
The price mark-ups that players were anticipating as recently as August did not materialise in September. In the most favourable case, merchants were able to hold scrap prices steady. But the more the month progressed, a downward price trend has becoming evident.
Trading volumes had already been exceptionally low in August, a development which was largely attributed to the summer holidays and maintenance shutdowns. But even with the summer holiday season now over, steel producers’ demand for scrap in Germany and neighbouring countries has remained very subdued. Respondents say that many mills have curtailed production or even completely shut down individual furnaces. In many cases, production is only taking place at night and on the weekends, when electricity is cheaper....
