German scrap steel prices have been witnessing a declining trend with a minor stabilization lately
German scrap steel prices stabilised in June following steep declines in May, with early-month transactions showing modest increases in some cases. Market participants reported stable demand from domestic steel mills, though intense competition for raw materials continued to pressure profit margins. Despite some recyclers' earlier expectations of a stronger price recovery, the market remained constrained by weakening export demand, particularly to Turkey.
Industry sources anticipate further market softening in July as seasonal factors come into play. The traditional summer slowdown in steel production, marked by plant holidays, is expected to reduce scrap demand more significantly than the projected seasonal decline in scrap generation. This imbalance could lead to substantial price and volume reductions during the summer months unless export markets show improvement.
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Current export market indicators offer little optimism for price support. International scrap prices denominated in US dollars have shown continued weakness in recent weeks, with the decline appearing even more pronounced when converted to euros. Market participants remain cautious about near-term prospects, with the balance between domestic demand and export opportunities likely to determine price movements in the coming months.
