During the traditional holiday month of August the mills increased their prices by EUR 25 - 35 per tonne in all areas, depending on scrap grade. Higher prices were achieved with some mills and also for special qualities.

The reasons for the price increase were varied. On the one hand, the integrated steel mills showed a rise in demand due to increasing flat steel production levels; on the other hand, many mills ordered scrap quantities in excess of their requirement for August production. In addition to these factors, an unexpected increase in demand from Turkish mills forced the EU-mills to react to the gradual price increase of about USD 50 - 60 per tonne (FOB Rotterdam), which has been taking place since July, in order to hinder a further outflow of obsolete scrap from Europe.

The mills’ buying behaviour and traders’ expectancy, which traditionally assumes an upswing in demand with a corresponding price increase after the vacation period, results in a decreased inclination of selling interest of players. Scrap trade sentiment was positive as the economic press announced a slight general market recovery and the August demand for prompt scrap which had been suffering for months took a much welcomed upturn. In addition, several blast furnaces which had been forced to shutdown as a result of unfavourable market conditions were restarted during the month. However, uncertainty is growing as to the sustainability of the steel market development and the question remains as to how long the upward trend will last.

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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