Scrap prices in Germany have risen slightly in this month’s negotiations, and could further increase going forward, Kallanish hears from industry participants.

In February, the average prices of key grades E2, E3 and E4 (new arisings, old heavy scrap, shredded), all were at around €250/tonne ($282/t) ex-yard. This month, prices rose across the board by €5/t on average, with E3 now at €253/t, E4 at €256/t and E5 (turnings) also at €256/t.

“In individual cases, premiums of up to €20 were achieved,” one observer says. “These are not statistically significant and depend on the region and its supply situation, but it tells us that certain scrap sorts, new as well as old, can be scarce in some places,” he explains.

The reason for this is the slowdown of production in the carmaking and mechanical engineering industries, so that new arisings accrue to a lesser extent. The same applies to old heavy scrap, as demolition activity has been somewhat low of late. A southern-based scrapyard confirms the views, and also notes that March prices are being supported by high activity at rebar mills, and a high number of working days.

These conditions will persist, so that sources expect prices to stay level, or even gain “… by a couple of euros, but it is getting harder to tell, as negotiations stretch ever later into the month,” the observer says.