German scrap prices have decreased so far in November due to low domestic demand and limited exports, market participants tell Kallanish. Most sources expect values to continue to decline.

Most regions in Germany have seen decreases this month of around €5-10/tonne ($5.3-10.63/t) across various grades.

“Due to the approaching Christmas holiday season and the low demand for scrap from steel mills, the German steel scrap market is again seeing weaker trading activity,” a source notes.

Nationwide average German prices for old thick scrap sort 3 are at €305/t, while new scrap sort 2/8 was at €308/t and E40 shredded scrap at €310/t.

In Austria, scrap prices were flat across all grades so far this month. New scrap sort 2/8 is at €300/t, while old thick scrap sort 3 is at €305/t.

“Exports are stable, but volumes continue to be low,” another participant in the market notes. “Turkish steel mills stocked up on cheap billets from China, which is why demand for steel scrap was low.”

German steel recyclers federation BDSV said it is pessimistic about the coming year, according to its annual industry survey conducted in September (see Kallanish passim). Due to the lack of investment momentum in the German economy and the stuttering transformation of the industry, scrap demand will not exceed supply, it noted.

BDSV and its nonferrous counterpart VDM emphasised last month the importance of relations with India with respect to raw materials trade. Such a partnership will enable to develop joint environmental and labour standards, and to lower trade barriers.

Germany’s ferrous scrap exports decreased in January-August to 4.9 million tonnes, down 5% on-year.

2023 scrap exports of 7.61mt were the lowest since the economic and financial crisis of 2009. Scrap imports last year fell by 20.7% to 3.48mt.