Davis Index’s monthly German ferrous consumer scrap indices increased by €32/mt ($39/mt) on average, depending on grade and location, following the conclusion of mill-yard negotiations in December.
Domestic ferrous scrap tags surged over the past four weeks as local steel producers tried to prevent material from being diverted towards export markets, where suppliers have enjoyed (sometimes daily) parabolic price hikes.
One Germany-based scrap trader commented that relatively stable-to-firm local consumption married with robust demand from north European export terminals had created a significantly tight supply availability in the market.
Availability is relatively tighter and stocks are low at present, but another mill buyer noted that ferrous scrap supply and demand fundamentals do not warrant the parabolic price hikes being witnessed over the past month.
North German ferrous scrap indices climbed by €34-38/mt over the past month for Sorte 1 (E1) to €255/mt, Sorte 2 (E2) to €273/mt, Sorte 3 (E3) to €270/mt, Sorte 4 (E40) to €275/mt, Sorte 5 (E5) to €238/mt, and Sorte 8 (E8) to €273/mt.
East German ferrous scrap indices increased by €23-35/mt over the past month for Sorte 1 (E1) at €246/mt, Sorte 2 (E2) at €255/mt, Sorte 3 (E3) at €259/mt, Sorte 4 (E40) at €264/mt, Sorte 5 (E5) at €225/mt, and Sorte 8 (E8) at €258/mt.
South German ferrous scrap indices leaped €40/mt higher over the past month for Sorte 1 (E1) to €250/mt, Sorte 2 (E2) to €260/mt, Sorte 3 (E3) to €258/mt, Sorte 4 (E40) to €260/mt, Sorte 5 (E5) to €235/mt, and Sorte 8 (E8) to €268/mt.
West German ferrous scrap indices surged by €30-35/mt over the past month for Sorte 1 (E1) to €253/mt, Sorte 2 (E2) to €267/mt, Sorte 3 (E3) to €265/mt, Sorte 4 (E40) to €270/mt, Sorte 5 (E5) to €240/mt, and Sorte 8 (E8) to €275/mt.
Market participants have already indicated that mills will be willing to pay €65-75/mt more for January ferrous scrap deliveries.
(€1 = $1.23)