Wintry weather leads to regional differences in ferrous scrap prices

German ferrous scrap prices increased for the fourth consecutive month in February, although the rise was not supported by an improvement in steel demand. The steel industry continues to face weak order intake and high energy costs, leading to low-capacity utilisation across many mills. Instead, the price growth was mainly driven by tightening supply. Severe winter weather in recent weeks disrupted scrap collection and logistics, particularly in northern and eastern Germany. Snow and frozen canals hampered both inbound and outbound deliveries at recycling yards. In response to supply risks, some steel mills switched to lorry transport to secure volumes, often paying significantly higher prices. At the same time, import volumes from Poland and Czechia declined. Ukraine’s export restrictions, introduced at the beginning of the year, reduced scrap availability in Poland, as less Ukrainian material entered the country. Consequently, more Polish scrap remained in the domestic market, leaving less available for export to Germany. As a result of these combined factors, steel mills in eastern Germany faced the greatest pressure in sourcing scrap and offered the highest prices in February.