Davis Index’s monthly German ferrous scrap indices rose by €28-65/mt ($33-77/mt), depending on grade and location, following the conclusion of June mill-yard negotiations.
German ferrous scrap benchmarks skyrocketed this month as steel mills submitted opening bids of €40/mt up for obsolete and €50/mt higher for prime grades versus the prior month.
However, high domestic capacity utilization rates and robust export demand prompted German steel producers to revise their bids by a further €10/mt to retain material locally.
Demand for Sorte 5 (E5) grades, equivalent to turnings, was almost non-existent as buyers shunned low, relatively “dirty” grades, with prices only climbing by €30/mt on average.
This was further typified by an increase in the spread between Sorte 3 (E3) and Sorte 4 (E40), which rose from €2-5/mt to €10-15/mt given the scarcity and demand for these grades.
North German ferrous scrap indices increased by €28-57/mt delivered mill for Sorte 1 (E1) to €383/mt, Sorte 2 (E2) to €440/mt, Sorte 3 (E3) to €430/mt, Sorte 4 (E40) to €435/mt, Sorte 5 (E5) to €348/mt, and Sorte 8 (E8) to €446/mt.
East German ferrous scrap indices jumped by €30-62/mt for E1 to €400/mt, E2 to €432/mt, E3 to €433/mt, E40 to €445/mt, E5 to €365/mt, and E8 to €432/mt, delivered mill.
South German ferrous scrap indices surged by €45-63/mt for E1 to €398/mt, E2 to €435/mt, E3 to €423/mt, E40 to €433/mt, E5 to €365/mt, and E8 to €438/mt, all on a delivered mill basis.
West German ferrous scrap indices soared by €33-65/mt delivered mill for E1 to €417/mt, E2 to €450/mt, E3 to €437/mt, E40 to €450/mt, E5 to €373/mt, and E8 to €450/mt.
(€1=$1.19)