German scrap prices have increased so far in March on the back of demand and growing exports, market participants tell Kallanish. Some expect this trend may continue till the end of the month.

“Trading activity is very good and this will probably remain so in the next few weeks,” a Bavarian trader notes.

Scrap prices rose €15-20/tonne ($16.3-21.7) in the first ten days of March.

Nationwide average German prices for old thick scrap sort 3 are now at €328/t ($323/t), while new scrap sort 2/8 is at €330/t and E40 shredded scrap at €335/t.

In Austria, scrap prices also increased significantly this month, by €25-30/t depending on the sort, amid more activity in the market. Old scrap sort 3 is thus at €330/t and new scrap sort 2/8 at €320t.

“Demand for scrap from German and Italian steel mills has surged this month due to more [online] production capacities, which increased prices for this raw material,” another participant in the market confirms. “Exports, mostly to Türkiye, are also stable.”

Most sources are certain that new US steel tariffs will have an impact on Germany's steel industry and on scrap trade, but it is too early to say what exactly will happen or when.

Germany’s ferrous scrap exports decreased in January-November 2024 to 6.55 million tonnes, down 11% on-year (see Kallanish passim). This is the lowest ten-month figure since data collection began in 2006.

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

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.