High export and domestic demand pushes German scrap prices higher

steel scrap yard
Increased buying especially by Turkish consumers
forced German mills to raise their prices.
25.05.2021 − 

Over the past few weeks, the German steel scrap market saw another significant price jump. Even though ferrous scrap merchants had been optimistic in their expectations for business in May, traders were surprised by scale of the final hikes. The increases were driven in particular by the booming export business but also by high scrap demand from domestic steel mills. At the same time, scrap supply, especially in the new scrap segment, remains tight because of the ongoing production disruptions in the automotive industry due to supply chain issues.

At the start of May, it still looked like prices might hold steady or rise only slightly. The first prices put forward by the steel mills represented only a small increase over April levels i any at ally. But only minimal volumes were sold at these prices, since news from the export market quickly indicated that prices there would rise again considerably.

Export prices at historic high levels

Turkish scrap consumers, who had been reticent to purchase for most of April, significantly stepped up their purchasing activities towards the end of the month. Steel mills in Turkey are particularly benefiting from the latest price explosion on the Chinese steel market, which is fuelling demand for Turkish billets and reinforcing bars in China and other Asian countries. As a result, Turkish producers were able to raise their sales prices, which in turn provided upward momentum for the scrap price – also because the availability of scrap was lower than Turkish buyers had initially believed.

You can read the full market report for the steel scrap market in Germany in the print and e-paper editions of EUWID Recycling & Waste Management 11/2021, out 2 June. Premium subscribers can access the market report right away:

Ferrous scrap in Germany

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