Davis Index’s monthly German ferrous consumer scrap indices increased on average by €35/mt ($42/mt), depending on grade and location, following the conclusion of mill-yard negotiations in March.
German buyers opened March negotiations at up to €35-40/mt higher compared with February’s levels in a concerted effort to prevent material flowing to export yards in Hamburg heading onwards to Turkey.
Domestic ferrous scrap prices were also partially supported by inclement weather in northern Europe during February, with heavy snow negatively affecting logistics, trucking routes, and, ultimately, collection rates.
As the month bore on, ferrous scrap benchmarks on major seaborne trade routes, particularly to Turkey, witnessed sharp declines, encouraging some dynamic German steel producers to pull back their bids by €10/mt to €25-30/mt up on last month.
North German ferrous scrap indices increased by €20-41/mt over the past month for Sorte 1 (E1) to €339/mt, Sorte (2) to €364/mt, Sorte 3 (E3) €361/mt, Sorte 4 (E40) €366/mt, Sorte 5 (E5) €298/mt, and Sorte 8 (E8) €365/mt on a delivered to mill basis.
East German ferrous scrap indices increased €34-37/mt over the past month for Sorte 1 (E1) to €335/mt, Sorte (2) to €350/mt, Sorte 3 (E3) €360/mt, Sorte 4 (E40) €355/mt, Sorte 5 (E5) €315/mt, and Sorte 8 (E8) €350/mt on a delivered to mill basis.
South German ferrous scrap indices increased €21-33/mt over the past month for Sorte 1 (E1) to €325/mt, Sorte (2) to €350/mt, Sorte 3 (E3) €353/mt, Sorte 4 (E40) €360/mt, Sorte 5 (E5) €305/mt, and Sorte 8 (E8) €350/mt on a delivered to mill basis.
West German ferrous scrap indices increased €3-40/mt over the past month for Sorte 1 (E1) to €345/mt, Sorte (2) to €360/mt, Sorte 3 (E3) €355/mt, Sorte 4 (E40) €360/mt, Sorte 5 (E5) €315/mt, and Sorte 8 (E8) €363/mt on a delivered to mill basis.
(€1 = $1.19)