German scrap prices skyrocketed at the beginning of March due to the Russian invasion of Ukraine and short supply, according to German scrap market participants. Most sources expect new hikes this month.
Prices in southern Germany and in most other parts of the country increased by €80-90/tonne ($88-100/t) this month, a German participant tells Kallanish.
Nationwide average prices for old thick scrap sort 3 are up from €450/t to €530/t. The price for new scrap sort 2/8, meanwhile, has reached €570-580/t.
The price for E40 shredded scrap has reached €570/t.
In Austria, scrap prices have also increased significantly, for old thick scrap sort 3 to €515t, with new scrap sort 2/8 reaching €540/t.
“The scrap market in Germany and other European countries is going crazy due to the Russian-Ukrainian war and new sanctions against Russia,” a merchant observes. “Prices will most probably reach and even go above €600 very soon. This, combined with short supply due to logistical problems in Europe, can create a serious lack of this raw material for the steel industry.”
Supply continues to be pressured further by persistent semiconductor shortages, which have led to production halts in the automotive industry, sources say.
Svetoslav Abrossimov Bulgaria
