The Davis Index for German ferrous scrap declined by €11-25/mt ($12-27/mt), depending on grade and location, in February, following monthly mill-yard negotiations.
Across all four major regions, German obsolete ferrous scrap grades of Sorte 1 (E1) fell €14-23/mt to €182-206/mt; Sorte 3 (E3) plunged €12-24/mt to €200-221/mt; and Sorte 4 (E40) declined €19-25/mt to €210-226/mt.
German new low-residual ferrous scrap grades of Sorte 2 (E2) dropped €17-23/mt to €202-221/mt; Sorte 5 (E5) slumped €15-23/mt to €168-185/mt; and Sorte 8 (E8) tumbled €18-23 to €203-221/mt – all on delivered to mill basis.
Reductions in February mill settlements were limited compared with those witnessed in major seaborne trade routes over the past month given the limited availability of material in Germany.
Scrap market participants were reluctant to deliver large volumes of material to mills in response to margins, in some cases, being squeezed to uneconomical levels.
That said, north European dockside buying activity indicates that export yards are already paying €30/mt up, to secure material compared with levels seen the prior week and may dictate March settlements if they hold through the rest of this month.