Ferrous scrap dealers in Germany look
ahead to new year with mixed feelings

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18.12.2018 − 

An increasingly turbulent business year is drawing to a close for German steel scrap traders. Simmering trade conflicts, chaotic transport conditions and a weakening automotive sector have left their mark on the industry and are putting a damper on sentiment, market insiders told EUWID in December. According to a recently conducted survey by the industry association BDSV, only 7 per cent of firms expect a better business climate next year, while 47 per cent anticipate a deterioration. This growing pessimism was also apparent in the latest EUWID market survey. Some traders expect the new year to start off with a “rude awakening” and considerable price drops. Others warn that too much talk of a crisis may become a self-fulfilling prophecy and point in-stead to steel mills' continued good order intake. 

In December, the free delivered prices on the German market were unchanged in most cases. Depending on the grade and the location of the mill, however, scrap merchants were at times also forced to accept slight markdowns of be-tween €3-5. In particular the price of shear scrap came under pressure owing to softening export prices

At the moment, the Turkish steel industry is in a price war with China and is therefore attempting to reduce the import price for scrap. Generally, Turkey is currently having trouble selling its steel products because of US import restrictions and quotas in the EU, reports one trader. Since Ger-many has an oversupply of scrap and the country depends on exports, lower export prices also put pressure on domestic prices.

The full market report appears in issue 26/2018 of EUWID Recycling & Waste Management on 19 December.

Premium subscribers can access it here immediately: EUWID Ferrous Scrap Market Report for Germany

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