"In general, mills' order positions are good and the demand for scrap high. For the ferrous scrap trade, this is an encouraging outlook for the first quarter" said a merchant, summing up the situation of the German scrap market. However, another market participant noted that the January scrap price increase may have been driven in part by the euphoria almost always felt by traders at the start of the year. Scrap merchants looking to deliver additional volumes at the end of last week had already had to make price concessions and were no longer able to implement the high price increases from the start of the month in full.
In addition, steel mills were out to penalise those merchants who had failed to deliver in December. When it came to restock this month, they took their business elsewhere. Market insiders said that not all scrap dealers had been able to sell the volumes they had on hand. Steel mills that had continued to operate through the Christmas and New Year's holidays now had very limited volumes of scrap on stock. Other mills which had not yet started up again until the second week in the calendar year had sufficient scrap inventories and ordered less, market sources reported.
The full report on the German steel scrap market including the price table appears in issue 2/2017 of EUWID Recycling and Waste Management on 25 January 2017. Online subscribers can already access it here: Steel Scrap Germany.