Prices slide as ferrous scrap demand remains weak in Germany

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22.06.2020 − 

If there had been any hopes that the steel market would quickly return to business as usual once the lockdown ended, these have now been dashed. A high level of uncertainty and caution persists among steel producers and consumers, which is very noticeable for steel scrap traders as a link in the value chain. In most cases, steel mills still had extremely muted demand for scrap in June. At the same time, scrap arisings at the generation points also remained low. Scrap prices have fallen, but thanks to temporarily robust demand from Turkey on the export market, the decline has not been as sharp as traders had at times feared.

As the summertime plant holiday season is approaching – and some shutdowns are likely to be longer than usual – scrap traders do not expect any notable recovery in scrap supply and demand in July and August, either.

The situation is apparently still particularly difficult for producers of flat and specialty steel. Orders from the automotive industry in particular are few and far between, EUWID was told. The planning horizons at auto manufacturers and suppliers are extremely short right now, which is evident in the volatile arisings of new scrap, according to scrap traders.

The full report on the ferrous scrap market in Germany will appear in the next print and e-paper issue of EUWID Recycling & Waste Management (13/2020) out on 24 June.

Online subscribers can access the report immediately here: Steel scrap Germany

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