Sections prices in Germany and adjacent markets have gained somewhat over recent weeks. Limitations to imports could play a role in supporting prices, despite weak market dynamics; however, this could be offset by falling scrap values.
German mills indicated in March €800/tonne ($912) delivered as their target deal price, but they are yet to achieve this. “I do not think any of the big ones [buyers] will pay that,” one German buyer tells Kallanish. He and others see the realistic value for transactions currently going towards €780/t in Germany.
A Danish observer confirms the target of €800, “which the mills declared two months ago”. He too sees the price paid in Germany at €780 delivered. Scandinavian prices, delivered, would be at €20-30 higher, he adds.
Although sections values are yet to see any downward corrections this year, that could happen later this month, the Danish observer warns. He says scrap prices have seen quite a decline recently and mills will have to make price concessions due to the resultant cost savings they are enjoying.
Another German source is however not so sure about that. He argues that scrap is not the price driver it used to be, with high energy costs and revised safeguard duties now playing a larger role.
Christian Koehl Germany
