Those observing the scrap metal market this month were confronted with a very inconsistent price structure - prices, depending on scrap grade, mills and region, varied considerably. According to trade circles, the steel mills were able to reduce their offered price from between €45 - €70 per tonne for obsolete scrap (depending on price level at the end of May) and €20 - €40 per tonne for industrial scrap.

There was a marked north-east/south divide. In comparison to the previous month, the demand in the east of Germany was noticeably reduced as many mills have throttled back their production, are intending to do so or are not producing at all because of technical difficulties.

In addition to this, there was an increase in scrap supply at very attractive prices from Poland and the Czech Republic. As consumers could always fall back on this, if required, the markdown in the East (especially for obsolete scrap) was at the higher end of the previously mentioned price reductions. In south Germany, the price markdowns tended to be towards the lower end of the range. This was a result of the Italian consumer’s behavior –an increase in scrap demand (in comparison to the previous month) from several Italian consumers as well as a €20 - €30 higher price levels than in Germany led to an increase in delivery willingness of German suppliers.

Although consumers had stated otherwise, it appears that the demand during June will be lower than that of May. The price reductions were possible as at the beginning of June no movement was registered on the deep sea market and prices were tumbling worldwide. In some areas consumers reduced the prices so much that the achieved price increase in April disappeared and the mills were paying prices last offered in March. The lower markdown for industrial scrap, especially for plate scrap, can be explained by the increase in demand from the steel mills. Some mills have adapted their production program favoring higher quality end products and due to these changes in production, the resulting quantity of industrial scrap is insufficient to cover current demand ...

For further information, please visit the EU-Recycling ePaper:
www.sekundaer-rohstoffe.com/eu-recycling/EU-R1/eu-r1.html?pageNumber=6

Quelle: bvse

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