|  

Good export business buoys steel scrap prices in Germany

19.02.2019 − 

This month brought another intense round of tough negotiations between ferrous scrap traders and steel mills. While ultimately, prices rose in most cases compared to January, traders had been hoping for more given the recent considerable increase in export prices. 

Demand from German steel mills was described as "subdued”. Inventory levels which remained good were thought to be at least partly responsible for the level of demand. Mills were also said to be experiencing a slowdown in incoming orders, especially from the automotive industry. However, none of the respondents surveyed by EUWID expect a major economic downturn.

Nevertheless, it is apparent that last year’s boom has come to an end. One market participant estimated that "Rather than running at 130 per cent as before, production at the steel mills and foundries is now perhaps only 95 per cent." Market players complained primarily about the growing uncertainty and unpredictability, tied for instance to the Sino-American trade war and the political drama surrounding Brexit. This was making planning more difficult and businesses are less willing to invest, EUWID was told.

The full ferrous scrap market report for Germany including the price table appears in issue 4/2019 of EUWID Recycling and Waste Management due out on 20 February. Premium subscribers can read it online in the E-Paper and here: Steel Scrap Germany.

 

 

Tags of this news:

previous − German plastics recyclers plan to expand capacities

Supply overhang putting Polish recovered paper prices under pressure  − next