Steel scrap supply and demand lower in Germany in July

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22.07.2019 − 

The summer holiday season and the associated summertime shutdowns have further depressed scrap demand from German steel mills, but even more so from Italian steel mills in July. However, since scrap supply has declined considerably, too, there is no inventory build-up in scrap yards in Germany. “Everything that came in could be sold again”, said one EUWID respondent, summarising the situation. 

Steel scrap prices nevertheless fell further. Owing to the generally intensifying market pressure and a lack of price momentum in the export business, traders and steel producers ultimately agreed to mark-downs. The size of the reduction was highly dependent on the individual steel mill, the scrap grade and the starting price level from the prior month.

The basic trend observed in previous months is unchanged: Steel mills are more cautious with their scrap purchasing because demand for their steel products, especially flat steel for the auto-motive industry, is weaker.

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