Davis Index’s monthly German ferrous consumer scrap indices declined on average by €5/mt ($6/mt), depending on grade and location, following the conclusion of mill-yard negotiations in April.
Softening export prices, particularly to Turkey, enabled most mills to negotiate modest discounts for April deliveries by mid-month after the Turkish HMS 1&2 (80:20) ferrous scrap import price came off $10/mt in the past 10 days.
Germany’s ferrous scrap consumption has remained relatively robust in March and April, with almost all mills, bar one or two, heard to be operating at close to full capacity utilization to meet strong domestic steel consumption.
Despite spiralling COVID-19 infection rates and the looming imposition of a fresh nationwide lockdown next week, German steel producers remained bullish on demand from the automotive and construction sectors.
Prices for relatively low-quality domestic ferrous scrap grades, such as E5 (turnings), witnessed the largest declines over the past month, as most mills shied away from purchasing inferior quality material to maximise melt yields.
Conversely, prime ferrous scrap grades, such as E2 and E8, were little changed in most regions compared with the prior month, as semi-conductor-restricted automotive production rates limited the generation of stampings.
North German ferrous scrap indices declined €3-12/mt delivered mill over the past month for Sorte 1 (E1) at €327/mt, Sorte 2 (E2) at €365/mt, Sorte 3 (E3) at €357/mt, Sorte 4 (E40) at €358/mt, Sorte 5 (E5) at €292/mt, and Sorte 8 (E8) at €362/mt.
East German ferrous scrap indices decreased €4-10/mt over the past month for Sorte 1 (E1) at €331/mt, Sorte 2 (E2) at €345/mt, Sorte 3 (E3) at €349/mt, Sorte 4 (E40) at €358/mt, Sorte 5 (E5) at €303/mt, and Sorte 8 (E8) at €348/mt delivered.
South German ferrous scrap indices dropped €2-4/mt over the past month for Sorte 1 (E1) at €323/mt, Sorte 2 (E2) at €348/mt, Sorte 3 (E3) at €320/mt, Sorte 4 (E40) at €328/mt, Sorte 5 (E5) at €284/mt, and Sorte 8 (E8) at €323/mt all on a delivered to mill basis.
West German ferrous scrap indices fell €3-5/mt delivered mill over the past month for Sorte 1 (E1) to €340/mt, Sorte 2 (E2) to €360/mt, Sorte 3 (E3) to €352/mt, Sorte 4 (E40) to €3355/mt, Sorte 5 (E5) to €310/mt, and Sorte 8 (E8) to €360/mt.
(€1 = $1.20)