Major scrap correction unlikely, says BDSV

The ongoing trend of increasing scrap prices in Europe will probably continue in the short term, but in the longer term the market will stabilise, says Daniela Entzian from German steel recyclers federation BDSV.

“The high import prices in Turkey and the high demand for scrap overall is good for the scrap market and prices will continue to increase in the short term,” Entzian said during a EUROMETAL webinar on Thursday attended by Kallanish. “However, in the longer term we don’t see major corrections.”

The situation depends on the decision of the European Commission on a possible future export ban for scrap. “Another problem continues to be the semiconductor supply shortage, which is still hurting the automotive industry and therefore scrap supply, especially for new scrap sort 2/8,” she observed.

German scrap prices have increased significantly due to strong demand from Turkey and Italy in May (see Kallanish passim). The nationwide average price has increased so far by €20-30/t, with, for example, old thick scrap sort 3 up from €320/t ($388) to €350/t in May’s negotiations. The price for new scrap sort 2/8 meanwhile has reached €370/t in southern Germany.

In Italy scrap prices for the mixed quality of E8 and E40 are now at €430-450/t delivered. While Italian prices skyrocketed this month, French and German increases have so far been more limited.

Svetoslav Abrossimov Bulgaria