IRON and STEEL   Scrap & Recycling  

Exports to support German domestic steel scrap prices

Negotiations for November domestic ferrous scrap supply contracts are about to start in Germany.

Suppliers are likely to resist pressure for lower prices from mills after a rebound in the global seaborne market began to draw product towards export docks.

Two German mills that traditionally enter monthly contract negotiations ahead of other mills were confirmed to have achieved €15/t decreases from October levels for scrap with November delivery. Other mills indicated that they will attempt to achieve similar reductions when they begin negotiations next week.

But it is possible that these mills will settle negotiations with rollovers, or even with increases of €5-10/t from last month, following a recent rebound in export prices that pushed delivered to dock prices in the Netherlands and Belgium to a significant premium over delivered to mill prices in Germany. Some scrap suppliers in Spain and Italy were able to achieve increases of around €10/t for deliveries in November in the past week.

Many German mills are likely to be cautious about accepting higher scrap prices as steel demand and prices remain weak. Argus' headline daily northwest Europe hot-rolled coil (HRC) ex-works index fell by another €33/t between 30 September and 30 October. The fob Turkey rebar assessment rose by $14/t during the same period, failing to keep pace with the rebound in the cfr Turkey HMS 1/2 80:20 scrap import price, which rose by $31.80/t.

When steel demand in Europe was strong in 2017 and 2018, mills tended to argue that domestic fundamentals were the main driver behind domestic scrap prices. But European domestic scrap prices have become increasingly influenced by export demand and detached from crude steel production figures since the beginning of this year, as domestic steel demand has waned.

This dynamic is likely to be particularly evident in November, as the premium of delivered to Amsterdam-Rotterdam-Antwerp-Ghent (ARAG) dock prices for HMS 1/2 over E1 delivered to mill in Germany has risen to its highest since Argus launched these assessments in May and August 2018, respectively. The premium was at €20.03/t on 31 October.

Argus launched its ARAG delivered to dock assessment for HMS 1 in April and its premium over Germany's E1 delivered to mill price was at €30.03/t on 31 October.

News No: 7065
Date: 2019/11/01 - 17:58
News Source: Argus Media

Export  German  steel scrap price  Amsterdam  Negotiation 


Leave a Comment:


Brazil: Iron Ore Exports Up 15% M-o-M in Oct'19

World's second-largest exporter of iron ore - Brazil has recorded an increase in iron ore export volumes to 31.2 MnT in Oct'19, as compared to Sept'19 which was at 27.14 MnT, according to trade statistics released by Brazil customs. On yearly basis, exports dropped 16% as against 37.2 MnT in Oct'18.

Global Billet Market Overview - Week 44, 2019

Billet export offers from all the major markets remained largely stable with slight uptick in CIS & Iran. However, Turkish imported scrap prices have inched up marginally.

How Exports are Influencing Indian Domestic HRC Prices?

Indian mills reported to have increased HRC offers by upto INR 750/t ($10.5) for November deliveries. Market participants feel this hike is largely supported on optimism seen in export market rather than improvement in domestic demand. SteelMint analyse why Indian HRC prices are so influenced by export market these days.

Nepal Billet Import Drops 24%; Sponge up 85% in Oct, M-o-M

Nepal’s billet imports fell by 24% M-o-M to 53,122 MT in Oct’19 against 70,390 MT in Sept’19. Entire import volumes were recorded from India.

South Africa: Manganese Ore Exports Increased By 31% M-o-M in Sep’19

South African Manganese Ore exports have hit record levels of over 1.8MnT in Sep’19. The country’s Manganese Ore exports were 1,819,213MT in Sep’19, taking the year-to-date Production at 14.99MnT which is 15% higher than the previous year.

Vietnam Mills Raise Bids For Imported HRC

SteelMint in conversation with market participants learned that Vietnam based end users have raised their bids for imported HRC following hike in offers. Current offers for positioned cargo of Indian HRC is assessed around USD 425-430/MT, CFR Vietnam.
Upcoming Events
 Mines & Metals

Mine & Business Today

 Scrap & Recycling


Our partners