German scrap prices are expected to increase in January amid new demand and exports after the holidays, say local market participants.
“Currently, the market is showing signs of new trade movements, but it’s too early to say what the prices will look like in the first month of 2023,” a buyer tells Kallanish. “That will become clearer next week.”
German scrap prices decreased in December by €10-20/tonne ($10.76-21) amid low demand and holidays.
Nationwide average prices for old thick scrap sort 3 were at €325/t ($349/t), while new scrap sort 2/8 was at €320/t. E40 shredded scrap was at €330/t.
In Austria, scrap prices remained unchanged in December. Old thick scrap sort 3 remained at €360/t and new scrap sort 2/8 was at €340/t.
“There is also an expectation that most steel plants will resume production in January, after they have decreased output in the past two months due to high energy and raw material costs,” another market participant notes. “However, it is unclear when this restocking will happen. Scrap producers are also hoping for new exports to Turkey and Italy.”
The 30-40% increase in rail freight prices in Germany from 1 January will inevitably have an impact on scrap trade.
Earlier, German steel recyclers federation BDSV urged for more scrap transport by rail due to logistics problems on road and waterway routes in Germany (see Kallanish passim).
Svetoslav Abrossimov Bulgaria