The majority of German steel mills showed a marked increase in scrap demand and as a result, after long-winded negotiations, the scrap prices rose across the board by approximately EUR 20 per tonne during January. Those buyers who had not already raised their offers by EUR 30 per tonne in December had to act accordingly to secure their required quantities.

Looking at December and January together, the price increase offered by the mills amounts to about EUR 50 per tonne. The trade estimates that January steel production levels were at least as high as those in December, when over 3m tonnes were produced. The trade showed a rather conservative sales behaviour by actually selling stocks from 2009. Mills with low stock levels profited from this behaviour, as well as those mills already purchasing for the coming month.

On the one hand, traders recorded a good inflow of industrial scrap as capacity utilization in many production companies showed a positive balance; on the other hand, the inflow from obsolete scrap collections showed a marked decrease, particularly from eastern and northern Germany, where the harsh winter weather brought scrap inflow to a standstill. The coming months will reveal the types and quantities of scrap which are actually available.


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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