Considering reduced production levels, the demand for scrap was high in December as many mills bought in stocks for their January production. The mills raised the offered price by about EUR 20 - 25 per tonne to stimulate the trade’s delivery willingness, which on the whole tends to be rather guarded towards the end of the year. However, the price paid did reflect the differing price levels paid in November. The integrated mills raised their prices by up to EUR 30 per tonne for the special scrap grade they require.

The scrap price increase, expected by the trade for January, showed its effect by the middle of the month leading to a marked reduction in scrap supply to the mills. Those mills which were late in ordering the required scrap quantities had difficulty fulfilling their needs. Much to the delight of the scrap trade there was an increase in demand for new scrap. The demand for new scrap had been very poor in the last few months as the mills turned to obsolete scrap to cut costs; this movement was then reflected in the marginal price differentiation between the two scrap types. Increased pig-iron production also had a positive effect on the use of new scrap in converters. Although most of the EAF-steel plants have already announced that the usual holiday shutdown will be extended this year, it appears, that for the majority there will be no difficulties in receiving scrap deliveries. The mills are obviously concerned about having adequate stocks at the beginning of January to meet their production requirements for the month, especially as deliveries could be disrupted by adverse weather conditions.

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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