July saw prices drop on the German ferrous scrap market. Further reductions are expected for August. New scrap arisings are generally described as healthy while incoming volumes of old scrap are lower because of the summer season.
The market shows the impact of poor demand from Turkey for German steel scrap deliveries. Turkish steel mills are said to have instead made purchases in the USA at favourable terms. According to market sources, virtually no steel scrap is exported from Germany to India and China, either. Some players in the north of the country reportedly even resorted to distress selling in order to generate liquidity.
Chinese crude steel and construction steel exports continue to burden regional steel markets all over the world and are cited as the reason for poor demand from Turkish mills for scrap from Germany. Chinese construction steel is produced in integrated steelworks from ore, a route which leverages the low price of iron ore.
The full report on the German steel scrap market including the price table is published in issue 15/2015 of EUWID Recycling and Waste Management on 22 July. Online subscribers can already access it here: