Davis Index’s monthly German ferrous consumer scrap indices climbed €10/mt ($11/mt) on average over the past month, depending on grade and location, following the conclusion of mill-yard negotiations in May.
German steel production schedules remained subdued in May—despite the resumption of major car manufacturing plants across the country—as most mills continued to fulfil old orders and remained uncertain about June production plans with new orders drying up.
Mills had to compete with relatively higher export prices in the seaborne market to secure volumes even as some procured just enough ferrous scrap to meet reduced melting requirements.
According to some market participants, German steel mills pulled higher bids once it became clear that scrap availability was in relative abundance after domestic suppliers offered double the volumes required.
Obsolete ferrous scrap grades of Sorte 1 (E1) climbed by €5-10/mt to €191-206/mt, Sorte 3 (E3) increased by €4-12/mt to €200-226/mt, and Sorte 4 (E40) ascended by €3-10/mt to €206-231/mt in northern, eastern, southern and western Germany.
Davis Index’s new low residual ferrous scrap indices for north, east, south and west German Sorte 2 (E2) and Sorte 8 (E8) increased by €5-10/mt and €3-10/mt over the past month to €215-220/mt and €219-225/mt, respectively, delivered to mill.
(€1 = $1.08)