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Sharp fall in demand from German steel mills in June


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26.06.2019 − 

Faltering business, especially in the automotive sector, is increasingly trickling down to the steel industry and thus to the ferrous scrap sector as well. "Steel mills do not have the usual call-offs for quality steel from the automotive sector so they need less scrap. At the same time, less and less material is being generated,” one scrap merchant said, summing up developments in a conversation with EUWID. 

Incoming and outgoing scrap volumes are still roughly balanced, meaning that nothing was accumulating at scrap dealer's yards. However, merchants expect inventories to swell during the summer holidays when many steelworks will be idled for several weeks, as usual, but when longer stoppages might also happen.

Scrap merchants had generally been trying to avoid building up inventories over the past few months. Mounting uncertainty and volatile pricing meant that businesses were going "short" and paying attention to turning over material quickly, one source stated.

The full report on the ferrous scrap market in Germany appears in EUWID Recycling & Waste Management 13/2019 published on 26 June. Our online subscribers can access the full report here.

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