stainless steel scrap market starts 2015 on weak note, likely to face lower availability in coming weeks

 

BRUSSELS (Scrap Monster):  The Bureau of International Recycling (BIR) has released the latest edition Stainless Steel and Special Alloys World Mirror. The Feb ’15 World Mirror states that stainless steel scrap market has made a weak start to 2015. The market is likely to face lower availability in the forthcoming weeks, it noted.

 

The slow pace in consumption of Chinese ore stocks for nickel production and the rising LME inventory levels have held back the Nickel and Stainless steel prices. As per exchange data, the LME stocks have increased by nearly 25,000 tonnes since the beginning of the New Year.

 

The domestic production of stainless steel continued to drop in the US on account of strengthening dollar and rising imports. The stainless import volumes of the country are likely to surge higher by 65% from 106,000 tonnes in Dec ’14 to estimated 175,000 tonnes in January this year. Local scrap purchase prices saw steep declines during the month.

 

The stainless steel production and exports by Italy in 2014 was badly affected due to prolonged strike action at AST. The recovery in production is not strong as expected in 2015. However, the Far East demand for specific items such as 316 turnings has started seeing good momentum. The UK scrap demand fell during the last quarter of 2014, on account of low stainless steel production.

 

The stainless steel production in India rebounded sharply in India. The increased production activity is likely to keep the scrap demand high in the country. With Euro weakening against US dollar, the scrap imports from Eurozone region is likely to be benefitted.

 

Middle East region continues to attract major investments despite falling oil prices and escalating terrorist menace. Dealers and yard owners in the region are seen accumulating stainless steel scrap at lower levels in anticipation of a market recovery.