Local German scrap prices move down in July

The local German scrap market has moved down over the month of July due to the lack of support from the local and export markets. The negative sentiment in the finished steel segments and the cheaper semi-finished material in the international market have exerted pressure on the domestic scrap market.

Currently, scrap collection prices at EU-based export yards are in the range of €320-330/mt DAP Amsterdam and Belgium, moving up from the €320-325s/mt DAP levels observed earlier this month. Despite the firm stance of sub-collectors in the region, sluggish and slower demand from Turkey has negatively impacted the market mood. Also, European market players are planning to take their holidays in August. With Turkey continuing to buy cheaper billets, there may be further downward pressure on European scrap quotations.

According to the latest data provided by the Bundesvereinigung Deutscher Stahlrecycling-und Entsorgungsunternehmen e.V, in the first 20 days of May scrap prices moved down by €2.5-9/mt month on month. Additionally, the year-on-year increase was in the range of €28.8-52.1/mt.

The prices, provided by Bundesvereinigung Deutscher Stahlrecycling-und Entsorgungsunternehmen e.V., are average prices for domestic transactions across Germany in the first 20 days of the given month.

Specifications:

E1 - Old steel scrap: thickness ≥ 4 mm, maximum dimensions 1,5 m x 0,5 m x 0,5 m
E2/E8 - New steel scrap: maximum dimensions 1,5 m x 0,5 m x 0,5 m
E3 - Heavy old steel scrap: thickness ≥ 6 mm, maximum dimensions 1,5 m x 0,5 m x 0,5 m
E40 - Shredded scrap: excluding incinerator steel scrap and collection scrap; density ≥ 1,1 mt/m3, Fe ≥ 92%
E5M - Turnings: excluding iron and automatic steel turnings