Scrap businesses are in a downbeat mood after ferrous scrap prices dropped by around €15 per tonne on the German market in May. While prices are high on the whole, traders with large amounts of scrap on stock that had tied their contracts to the index published by the German Steel Federation (WV Stahl) are suffering amid falling prices. The relatively slow response of this index meant that procurement prices were only adjusted to lower sales prices after a delay, thereby slimming margins or resulting in a loss, respondents said.
Comments on ferrous scrap arisings in Germany were mixed. Small merchants reported a decrease of up to 20 per cent in volumes. Others said that old scrap volumes were bouncing back and that there were only a few cases of new scrap arisings slipping slightly. Supply and demand appear to be balanced on the whole.
Almost no ferrous scrap was leaving Germany for deep-sea export. Turkey and India reportedly needed material. However, prices on these markets were lower than domestic prices, meaning that merchants were almost only serving the German market and border areas in neighbouring countries. Demand from Italy was described as subdued.
The full report for the German ferrous scrap market will appear in EUWID Recycling and Waste Management 11/2013.
Online subscribers can already access the report on our website.