The monthly Davis Index for German ferrous scrap increased on average by €14/mt ($15/mt), depending on grade and location, following the conclusion of mill-yard negotiations in March.
Across all four major regions, German obsolete ferrous scrap grades of Sorte 1 (E1) climbed by €8-17/mt to €197-223/mt, and Sorte 3 (E3) rose by €8-26/mt to €215-242/mt. However, Sorte 4 (E40) declined by €5-24/mt to €224-250/mt.
German new low residual ferrous scrap grades of Sorte 2 (E2) increased by €15-26/mt to €217-242/mt, while Sorte 8 (E8) rose by €15-24 to €218-245/mt. East and south German Sorte 5 (E5) increased by €15/mt to €225/mt and €234/mt, respectively.
However, the monthly indices for north and west Germany Sorte 5 (E5) decreased by €31/mt and €25/mt to €195/mt and €200/mt, respectively, delivered to mill in March, as a result of limited demand for these grades.
Although domestic steel market fundamentals hardly changed in March compared to the previous month, German mills often paid higher prices to secure material because export prices rose earlier in the month.
Market participants said German ferrous scrap processors in the north have already reduced gate prices by €30/mt, while their counterparts in the south decreased purchase prices by €50/mt.