During February the headlines were full of reports of the extremely poor inflow of collected scrap due to adverse weather conditions coupled with high demand from the German mills and failing sales levels for long steel products. The price offered by German mills remained more or less unchanged in comparison to January, with the exception of a few mills located in eastern Germany where price increases of EUR 5 – 8 were offered in an attempt to stimulate scrap inflow.

However, this proved to be somewhat ineffective as the north and east were the areas hardest hit by the extreme weather conditions. Large quantities of snow and heavy frosts reduced the availability of collected scrap throughout the whole of Germany. As a result, not all mills received the required quantities; those not successful tried, where possible, to come by other supplies to cover their requirements.

During February, it again became clear that the price war over shear- and shredderfeedstock has started to pick up speed. Much of the equipment and machinery bought and financed during the boom needs to be in use order to satisfy the credit payments due on them.

A large difference already exists between the required and delivered input material, not only in Germany but Europe-wide; the harsh winter has just exacerbated the situation. For example, the trade reports that in addition to the virtual drying up of collected scrap inflow in some areas, there is also a very unsatisfactory amount of industrial scrap available. The order situation at the production sites generates a very variable emergence of industrial scrap, dependent on area and production line.

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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