Strong demand buoys steel scrap prices in Germany

Ferrous scrap prices have increased on the German
market for the third month in a row in January
20.01.2020 − 

Following the typical annual pattern, the German steel scrap market kicked off the new year with price hikes. The negotiations between steel mills and traders, which stretched into the third week of the year, resulted in mark-ups in the lower double digits.

However, the longer it took to reach a deal, the smaller the hike became. Price increases on the domestic market waned as the export price, which had been strong, started softening again recently. Weaker exports are now also tempering traders’ price expectations for February.

In January, it was above all strong demand for ferrous scrap from Turkey which had boosted scrap prices for the third month in a row. The negotiating strength of German steelworks corresponded to the size of their inventory levels after the year-end holiday shutdowns.

Construction sector continues to support steel and scrap market

Overall, merchants described scrap demand from German steel mills as good at the moment. Ordering, particularly for reinforcement steel, remains strong owing to the continued boom in the construction sector, which in turn is buoying demand for scrap. The good order levels, combined with the ongoing uptick in scrap prices, as well as the prospect of a price pullback in February, led scrap traders to release a lot of volumes at the beginning of the year that they had been holding back in December.

Our online subscribers can access the full report immediately here.

The steel scrap market report for Germany will also appear in EUWID Recycling & Waste Management 02/2020 on 22 January 2020.

Tags of this news:

previous − French recovered paper prices tumble again, but remain in positive territory

Subdued outlook for waste plastics in Germany  − next