German scrap prices have remained flat in January due to low domestic demand and limited exports, market participants tell Kallanish, with most expecting a stable market in February amid slow trade.

“The persistently poor order situation in the building construction and automotive industries as well as high energy costs are curbing the need for new scrap deliveries,” a source notes.

Nationwide average German prices for old thick scrap sort 3 are at €300/tonne ($311.8/t), while new scrap sort 2/8 is at €305/t and E40 shredded scrap at €308/t.

In Austria, scrap prices also remain unchanged for old scrap sort 3, at €305/t, and for new scrap sort 2/8 at €290/t.

“There will probably be no major changes next month and forecasts range from stable to maybe slightly rising prices,” another participant noted. “The Turkish scrap market is starting to show some signs for possible more demand for scrap and this could bring some new movements in the situation.”

Germany’s ferrous scrap exports decreased in January-October 2024 to 6 million tonnes, down 9% on-year (see Kallanish passim). This is the lowest ten-month figure since data collection began in 2006.

Ten-month German scrap imports were 3.8mt, up 28% on-year.

German steel scrap association BDSV and the Association of German Metal Traders and Recyclers (VDM) have recently published a position paper with demands to the future federal government after the elections next month.

The associations note that practical EU recommendations are needed to eliminate regulatory obstacles. They point to high electricity prices in Germany that threaten the competitiveness of the steel industry, which affects the demand for recycled steel and metal.

The associations call for a reduction in state fees, surcharges and taxes on electricity to the minimum European level, an acceleration of the expansion of renewable energy sources and the creation of a temporary instrument to support the industry during the energy transition.

BDSV said last September it is pessimistic about the coming year. Due to the lack of investment momentum in the German economy and stuttering steel industry electrification, scrap demand will not exceed supply, it noted.