German scrap prices first increased at the beginning of April but have since fallen back amid lower domestic demand and limited exports, market participants tell Kallanish. Most expect prices to decrease in the coming weeks.

“The situation is very difficult this month due to weak trade in the scrap market,” a trader notes. “Another reason for the uncertainty remains the continued limited availability of raw materials [scrap].”

Scrap prices rose around €5-8/tonne ($5.67-9) earlier this month but then decreased to previous levels.

Nationwide average German prices for old thick scrap sort 3 are at €328/t ($372/t), while new scrap sort 2/8 is at €330/t and E40 shredded scrap at €335/t.

In Austria, scrap prices also increased earlier this month, by €5-10/t depending on the sort. Old scrap sort 3 is thus at €340/t and new scrap sort 2/8 at €330/t. Although they have not since fallen back, sources expect a slight downward correction. German values are also seen dropping further.

Sentiment among most traders and producers was lifted last month by the prospect of a possible economic upturn in Germany driven by a €500 billion ($567 billion) government financial package for infrastructure and climate protection.

Sources are nevertheless certain that new US steel tariffs will have an effect on Germany's steel industry and on scrap trade, but it is too early to assess the full impact.

Germany’s ferrous scrap exports decreased in 2024 to 7.1 million tonnes, down 11% on-year, worth €3.9 billion ($4.2 billion). This is the lowest figure since data collection began in 2006. The previous record low was 7.48mt in 2009.

German steel scrap association BDSV and the Association of German Metal Traders and Recyclers (VDM) recently urged the EU to eliminate regulatory obstacles (see Kallanish passim). They pointed to high electricity prices in Germany that threaten the competitiveness of the steel industry, impacting steel demand.