Germany reduced scrap exports by 7% y/y in January-May

In January-May 2024, German scrap companies reduced exports of ferrous scrap by 7% compared to the same period in 2023, to 3.1 million tons. The main decline occurred in the first quarter, Kallanish reports, citing data from the Federal Statistical Office.

Revenues from exports of raw materials for 5 months amounted to €925 million, which is 22.9% less compared to January-May last year.

In May of this year, Germany increased its scrap exports by 1.5% compared to May 2023 – up to 577 thousand tons. Shipments of raw materials increased during the month to Denmark and Switzerland.

Imports of scrap for 5 months increased by 12.2% y/y – to 1.75 million tons, and import costs increased by 4% – to €728 million. 383 thousand tons of scrap were imported in May, which is 14% less than in the previous year.

Scrap prices in Germany remained largely stable in July due to an unchanged domestic market and limited exports. Some sources expect a slight increase next month amid a possible market recovery, while others predict stability.

The average price for obsolete grade 3 scrap is €345/t, while newer grades 2/8 scrap has dropped to €350/t. Shredded E40 scrap costs €360/t.

As GMK Center reported earlier, in 2023, Germany reduced scrap metal exports by 1.5% compared to 2022 to 7.8 million tons. In 2022, exports decreased by 9.9% after growing by 1.9% in 2021. Exports of German scrap metal to third countries last year increased by 9.2% y/y – to 1.44 million tons. Shipments of raw materials to the European Union amounted to 6.4 million tons, down 3.6% y/y. The main export destinations for raw materials from Germany are the Netherlands, Turkey and India.

Germany is one of the ten largest steel producers in the world according to World Steel. In 2023, the country decreased steel production by 3.9% compared to 2022 to 35.4 million tons, ranking 8th in the global ranking of producing countries.