European Scrap Prices Hold Steady as German Logistics Strain Supply
European scrap metal markets remained broadly stable in October, with price movements generally limited to €5–€15 per tonne. In Germany, however, severe transport constraints and declining industrial scrap generation are creating growing pressure on material availability.
Key Points
- European Scrap Prices: October movements were generally limited to €5–€15 per tonne, depending on region, grade and transaction timing.
- Germany: Rhine shipping disruptions and high rail freight costs remain major constraints for mills and scrap suppliers.
- Rail Costs: Local road transport costs about €5–€10/t, compared with rail costs approaching €30/t in some cases.
- Scrap Supply: Industrial relocation and contraction in German metalworking are reducing the availability of high-quality scrap.
- Regional Markets: Austria and Spain posted gains of €5–€15/t, while France, Luxembourg and Poland remained mostly stable.
MONTREAL (Scrap Monster): European scrap metal prices remained broadly stable in October, with the German market showing only moderate movements despite persistent logistics problems and tighter availability of some high-quality grades.
According to a market report cited by GMK Center from Germany's Federal Association for Secondary Raw Materials and Recycling (bvse), scrap prices generally moved within a range of €5 to €15 per tonne, depending on the region, material grade and timing of individual transactions.
Expectations for stronger price increases at the start of the month were only partly realised before trading activity settled into a more stable pattern.
A weaker euro against the U.S. dollar also gave European traders greater flexibility in international markets without significantly reducing margins.
German Scrap Market Faces Severe Logistics Constraints
Transportation remains one of the most significant challenges facing Germany's steel and recycling sectors.
Conditions on the Rhine continue to create difficulties for mills and scrap suppliers that depend on inland-waterway transport.
Some market participants have effectively lost access to normal river-shipping routes, according to the report, forcing at least one steel producer to adjust production volumes.
Rail Costs Undermine Competitiveness
Rail logistics are also creating significant pressure for scrap suppliers.
Local truck transport reportedly costs approximately €5–€10 per tonne, while rail freight can reach about €30 per tonne.
The large cost difference is reducing the competitiveness of rail transport at a time when German recyclers and steelmakers need reliable alternatives to disrupted river shipping.
German recycling industry representatives have also repeatedly raised concerns about wagon availability and delays within the rail network.
Industrial Relocation Tightens High-Quality Scrap Supply
Germany is also experiencing structural changes in scrap generation as industrial production shifts outside the country.
The relocation of automotive production capacity to Hungary has already reduced volumes of automotive scrap offered through tenders, according to the report.
At the same time, contraction across Germany's metalworking sector is reducing the domestic generation of high-quality production scrap.
This creates a particular challenge for steelmakers and foundries seeking recycled raw materials as part of their decarbonisation and circular-economy strategies.
German Regional Scrap Markets Show Limited Movement
North and East
Scrap prices in northern and eastern Germany were largely unchanged or increased by up to €5 per tonne.
The market showed a catch-up effect in some transactions, although contracts concluded early in the month were reportedly priced above some later deals.
West and South-West
Sales volumes remained relatively low in western and south-western Germany.
Some steel mills increased purchasing prices for higher-quality new production scrap by as much as €10 per tonne.
Saar Region
Prices in the Saar region remained broadly unchanged as lower demand limited upward movement.
Neighbouring European Scrap Markets Remain Mostly Stable
Scrap markets across several neighbouring European countries also showed limited volatility during October.
France, Luxembourg and Poland were largely stable, with prices unchanged or increasing by no more than approximately €5 per tonne.
Austria and Spain recorded somewhat stronger gains, with prices rising by approximately €5–€15 per tonne depending on the scrap grade.
In Italy, the stronger price increase anticipated by some market participants failed to materialise. Mills contained purchasing-price increases, while imports from Germany rose by only about €5–€8 per tonne.
October Follows a Mixed September Across Global Scrap Markets
September produced mixed conditions across major regional scrap markets.
Prices in Turkey, the United States and Germany increased following summer weakness, while Chinese and Italian markets recorded declines of approximately $9 per tonne and $13 per tonne, respectively, according to GMK Center.
October's comparatively stable European market therefore reflects a balance between limited steel-mill buying, constrained scrap availability, logistics costs and international trading conditions.
Market Read
Europe's October scrap market remains relatively stable on price, but conditions beneath the headline numbers are less comfortable.
Germany's logistics problems and declining industrial scrap generation are constraining material flows even without a major price spike. That could become more important if steel demand improves and mills begin competing more aggressively for high-quality recycled feedstock.
For recyclers, the key issues to watch are Rhine transport conditions, rail availability and cost, German industrial output and the ability of neighbouring markets to absorb or supply material.
Courtesy: GMK Center