Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Davis Index’s monthly German ferrous consumer scrap indices increased on average €2/mt ($2/mt), depending on grade and location, following the conclusion of mill-yard negotiations in November.


German ferrous scrap buyers entered negotiations in November with bids unchanged compared with transactions from the prior month. However, it soon became apparent that mills had to increase bids to secure volumes in response to reduced domestic availability.


Steel mills in north Germany generally registered larger price hikes compared with smelters in other regions, due to increased competition between domestic and export markets, particularly to Turkey.


One German ferrous scrap mill buyer commented that downstream steel consumption from domestic automotive manufacturers had overtaken demand from the local construction industry after the first wave of the COVID-19 pandemic.


In the time since official monthly negotiations were concluded, one Germany-based ferrous scrap trader noted that indicative prices have jumped in response to robust export demand and reduced availability of obsolete grades – caused by the country’s partial lockdown.


In fact, Davis Index understands that one German smelter who secured small volumes in early November unchanged compared with the prior month, had to procure additional material from the “black” (spot) market at €5-15/mt extra (depending on grade).


Another German trader noted that some ferrous scrap suppliers, who accepted unchanged prices earlier in the month, were now seeing negative margins, given that they’ve had to pay much higher prices to secure tonnage amid a national shortage of feedstock.


The monthly Davis Indices for North German ferrous scrap climbed €2-5/mt over the past month, driving prices for Sorte 1 (E1) to €217/mt, Sorte 2 (E2) to €236/mt, Sorte 3 (E3) to €236/mt, Sorte 4 (E40) to €240/mt, Sorte 5 (E5) to €203/mt, and Sorte 8 (E8) to €238/mt.


East German ferrous scrap indices were flat over the past month, with Sorte 1 (E1) at €211/mt, Sorte 2 (E2) at €230/mt, Sorte 3 (E3) at €235/mt, Sorte 4 (E40) at €240/mt, Sorte 5 (E5) at €198/mt, and Sorte 8 (E8) at €235/mt.


Monthly South German ferrous scrap indices edged higher by €1-3/mt, raising prices for Sorte 1 (E1) to €210/mt, Sorte 2 (E2) to €220/mt, Sorte 3 (E3) to €218/mt, Sorte 4 (E40) to €220/mt, Sorte 5 (E5) to €195/mt, and Sorte 8 (E8) to €228/mt.


West German ferrous scrap indices varied between a negative trend of €2/mt and a rise of €3/mt over the past month for Sorte 1 (E1) to €222/mt, Sorte 2 (E2) to €237/mt, Sorte 3 (E3) to €235/mt, Sorte 4 (E40) to €238/mt, Sorte 5 (E5) to €205/mt, and Sorte 8 (E8) to €245/mt.

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