Davis Index’s monthly German ferrous consumer scrap indices increase on average €15/mt ($18/mt) over the past month, depending on grade and location, following the conclusion of mill-yard negotiations in September.
German ferrous scrap buyers entered into negotiations in September with bids of €10/mt higher compared with transactions from the prior month, however, it soon became apparent that mills had to increase bids to secure volumes achieving higher prices in the export market.
Major seaborne benchmarks, particularly to Turkey, have increased $15/mt in the past month since German August settlements; with Davis Index’ HMS 1&2 (80:20) ferrous scrap import index peaking at $302.50/mt on Sept 10 before easing off thereafter.
As a result, north, east and west German mills were prompted to pay up to €18-20/mt compared with the prior month to secure sufficient volumes for their melting requirements and compete with relatively export prices.
South German-based mills witnessed more modest ferrous scrap prices hikes over the same period with competing buyers in Italy and Spain out of the market for extended annual leave, meaning domestic prices in this region only rose by up to €12/mt.
Domestic construction activity, the bastion of Germany’s economy this year, has petered out through July and August while stalling manufacturing activity has suddenly bounced back into expansionary growth territory over the same period.
North German ferrous scrap indices surged €17-19/mt over the past month for Sorte 1 (E1) to €218/mt, Sorte 2 (E2) to €230/mt, Sorte 3 (E3) to €230/mt, Sorte 4 (E40) to €235/mt, Sorte 5 (E5) to €195/mt, and Sorte 8 (E8) to €230/mt.
East German ferrous scrap indices jumped €15-20/mt over the past month for Sorte 1 (E1) to €207/mt, Sorte 2 (E2) to €225/mt, Sorte 3 (E3) to €229/mt, Sorte 4 (E40) to €234/mt, Sorte 5 (E5) to €195/mt, and Sorte 8 (E8) to €232/mt.
South German ferrous scrap indices climbed €7-12/mt over the past month for Sorte 1 (E1) to €206/mt, Sorte 2 (E2) to €219/mt, Sorte 3 (E3) to €215/mt, Sorte 4 (E40) to €216/mt, Sorte 5 (E5) to €195/mt, and Sorte 8 (E8) to €225/mt.
West German ferrous scrap indices increased €13-18/mt over the past month for Sorte 1 (E1) to €223/mt, Sorte 2 (E2) to €231/mt, Sorte 3 (E3) to €232/mt, Sorte 4 (E40) to €235/mt, Sorte 5 (E5) to €205/mt, and Sorte 8 (E8) to €237/mt.