German steel mills purchasing scrap in July raised prices by approx. EUR 15 – EUR 20 per tonne; particular types of scrap achieved an even higher price. One reason for the price upturn was the Turkish buying spree in June, which led to price increases resulting in an export price (CFR) to Turkey of 40 USD (approx. EUR 28) per Tonne by the beginning of July; it appears that domestic mills wanted to hinder a further outflow of obsolete scrap.

Compared to June, the trade estimated that the German steel industry increased production by 10 percent and mills were working at 50 – 60 percent utilization capacity, although this differed considerably depending on the type of mill. Whereas flat-rolled steel mills showed signs of recovery, some construction steel mills were still complaining of weak order levels. Prompt scrap levels varied depending on the manufacturer; some manufacturers have been able to stop short-time work and are even planning to shorten their summer closures, whereas for others there are no signs of relief.

No one is prepared to risk a prognosis as to whether the recovery experienced in certain areas of the market is here to stay. The destocking in some steel mills appears to have come to an end and tentative restocking can be perceived. ArcelorMittal has announced the re-opening of three blast furnaces in Europe due to the pick-up in demand for flat-rolled steel (especially from the automotive industry).

Although during July the price difference between new and obsolete scrap was still minimal, the trade regarded the pick-up in demand for new scrap as a positive sign, particularly because during the previous months the demand for new scrap had been almost non-existent. The trade describes this market development as friendly, although not yet satisfactory.

For further information, please visit www.sekundaer-rohstoffe.com/html/schrottmarkt.html. You will find the link at the end of the German report.

Quelle: bvse

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