Steel scrap prices rebound on the German market in March

Export demand pushed prices to near-January levels.
23.03.2021 − 

Ferrous scrap prices in Germany remained high in March and the February price dip was wiped out. At the beginning of March, prices returned almost to January levels, driven by lively exports to Turkey as well as increased demand for scrap from German consumers. But with import demand at Turkish steel mills tapering off again, the price curve could start pointing downwards once more in April. Nevertheless, the scrap dealers surveyed by EUWID consider a price collapse to be extremely unlikely. The demand for scrap from the steel mills is simply too large, they say.

As is often the case, Turkey played a decisive role in shaping price trends on the German scrap market. After the strong import demand from Turkish steel mills set off an unprecedented surge in ferrous scrap prices in Germany between November and January, Turkish scrap buyers started retreating in the second half of that month, leading to a price correction in February. When Turkish consumers became more willing to buy again towards the end of last month, they provided substantial upward price momentum for the March negotiations between German steel mills and scrap traders.

With high scrap demand, Arcelor-Mittal pressed ahead early with March negotiations

In addition, some of the German mills apparently did not source sufficient scrap in February. According to traders, Arcelor-Mittal was especially short of material. Eager to sign deals quickly, the Luxembourg-based steel producer rushed to the market at the beginning of March willing to pay high price mark-ups at the January level. Other steel mills said they were consequently forced to pay more than they had originally wanted.

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 06/2021, out 24 March. Premium subscribers can access the market report right away:

Ferrous scrap in Germany

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