Davis Index’s monthly German ferrous consumer scrap indices declined on average by €34/mt ($41/mt), depending on grade and location, following the conclusion of mill-yard negotiations in February.
German monthly mill-yard settlements fell over the past month, as domestic benchmarks largely took their cues set from the export market, despite a relatively tight local supply-demand balance.
Some domestic steel producers initially opened negotiations at down €45/mt versus the prior month in early February, as they tried to capture much of the weakness exhibited in major seaborne trade routes.
That said, most mills struggled to secure sufficient volumes at those levels, which was made more challenging by a material rebound in north European export prices to Turkey during the monthly negotiations. As a result, German steel producers were obliged to make two downward revisions to those initial bids, first to -€30/mt and then a second adjustment to -€20/mt compared with January settled prices.
One German ferrous scrap trader commented that local supply availability, particularly of prime grades, had become relatively tighter, as the global shortage of semiconductor chips had impinged domestic vehicle production rates.
North German ferrous scrap indices declined by €27-45/mt delivered consumer over the past month for Sorte 1 (E1) to €302/mt, Sorte 2 (E2) to €325/mt, Sorte 3 (E3) to €320/mt, Sorte 4 (E40) to €327/mt, Sorte 5 (E5) to €278/mt, and Sorte 8 (E8) to €325/mt.
East German ferrous scrap indices dropped by €20-37/mt over the past month for Sorte 1 (E1) to €301/mt, Sorte 2 (E2) to €315/mt, Sorte 3 (E3) to €325/mt, Sorte 4 (E40) to €320/mt, Sorte 5 (E5) to €280/mt, and Sorte 8 (E8) to €313/mt all on delivered consumer basis.
The monthly South German ferrous scrap indices decreased by €26-37/mt for Sorte 1 (E1) to €295/mt, Sorte 2 (E2) to €323/mt, Sorte 3 (E3) to €320/mt, Sorte 4 (E40) to €328/mt, Sorte 5 (E5) to €284/mt, and Sorte 8 (E8) to €323/mt on delivered consumer basis.
West German ferrous scrap indices fell by €35-45/mt delivered consumer over the past month for Sorte 1 (E1) to €305/mt, Sorte 2 (E2) to €325/mt, Sorte 3 (E3) to €323/mt, Sorte 4 (E40) to €325/mt, Sorte 5 (E5) to €285/mt, and Sorte 8 (E8) to €328/mt.
(€1 = $1.21)