New year, same old problems: The German steel industry continues to be in a slump, which once again negatively affected demand for ferrous scrap in January. Recycling companies told the monthly EUWID survey that most steel mills have resumed production after the winter break. However, the ongoing poor order intake from the construction sector and automotive industry as well as high energy costs are dampening steelmakers’ demand for scrap deliveries in many places.
At the same time, arisings of old and new scrap remained modest at the beginning of 2025. This, combined with the presently stable export prices, generally resulted in sideways or slightly upward price movement on the German market in January.
"Business is simply stalled. The underlying sentiment is and will remain negative,” commented one ferrous scrap trader on the ongoing sluggish market.
The industry was especially taken aback by Italian steel producer Riva’s decision to put its entire workforce at the electric-arc furnace (EAF) mill in Henningsdorf in the East of Germany on short-time work and halt production for three months. "In my 30 years working in the industry, I have never seen a mill idle production so dramatically," said one respondent. There is a possibility that the crisis could affect other steel mills, EUWID was told.
Read the full monthly market report for steel scrap in Germany and access price charts and graphing tools here:
