German steel scrap market hits the brakes

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24.09.2019 − 

No one could describe the recent downturn in the ferrous scrap market as unexpected. For quite some time, all signs had pointed to a coming market contraction. However, the vehemence of the drop in steel mill demand in September and the abrupt fall in scrap prices that accompanied it surprised many in the ferrous scarp market. "Looking back, it's amazing that it was possible to close sales with the steelworks in August at more or less unchanged prices. Now the dam has broken," one market participant said, de-scribing the latest market developments.

Across the entire market there is a great deal of uncertainty and there was a lot of manoeuvring, said one merchant. Despite their full order books, processors of steel products for the construction sector were holding back with orders, waiting for still better prices. Long steel product prices were also falling, even in the midst of the continuing construction boom, due to growing competitive pressure.

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The full report on the steel scrap market in Germany also appears in EUWID Recycling & Waste Management 20/2019 published on 2 October.

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