Increasing price pressure on German ferrous scrap market

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22.05.2019 − 

There is growing price pressure on the steel scrap market in Germany. Free delivered prices for all scrap grades on the domestic market fell in May. And in the coming June negotiations, ferrous scrap traders predict there is likely to be further downward potential.

The economic slowdown, especially in the automotive industry, is very noticeable for scrap dealers at both ends of the value chain. Amid weakening vehicle sales, automotive manufacturers and their suppliers are curtailing production, meaning that less production scrap is being generated, dealers say. Traders estimate that post-industrial scrap arisings, especially steel turnings, are roughly 20 per cent lower than usual.

At the same time, there is weakening demand for steel from the automotive as well as the machinery and tools industries, so the steel mills' order situation is deteriorating, especially for quality steel. "Flat steel producers are having serious problems,” says one merchant. There are reports that steelmakers are halting production for a day here and there and have planned longer-than-usual downtimes for the summer.

The full market report is available to our premium subscribers immediately here. It will appear in the print and e-paper versions of EUWID Recycling & Waste Management issue 11/2019 out on 29 May.

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