Although the quantity of scrap purchased by steel mills remained stable in comparison to April, in some areas scrap prices weakened considerably. The average price markdown varied considerably depending on the mill, scrap grade and when the contract was finalized.

In the West prices varied from unchanged to a price reduction of EUR 25 per tonne, in the Southwest the markdown was between EUR 20 and EUR 25 per tonne, in the South around EUR 30 and in the East and Northeast by as much as EUR 35 – EUR 50 per tonne. Trade circles reported that in some areas the demand for industrial scrap was higher than the available supply, but despite this, prices dropped further during the month due to plummeting demand from third countries. Obsolete scrap prices were hit even more so. Steel producers in countries such as Turkey, Spain and India are still struggling to sell their finished products. From the middle of April up until going to press, Turkish steel producers have been offering price reductions of about EUR 80 per tonne on rebar as a buying incentive. During the same period, prices for HMS 1/2 (80:20) scrap have dropped by around 100 USD per tonne (FOB Rotterdam). This development has strengthened the end-consumers expectancy of further sinking prices and has led to a certain market paralysis, where each party is waiting to see how the other party reacts.

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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