SPOKANE (Scrap Monster): The stainless steel scrap prices dropped further, in line with the weakness in nickel market. Nickel prices touched new lows during the month, hitting $ 12,250 per tonne. LME stock levels are still at record highs which indicate that supply continues to remain robust. On the other hand, demand continues to remain subdued, sources said.

 

The prices of 304 stainless steel scrap dropped nearly 5% during the course of April this year. The prices which ranged from $1340 to $1390 per tonne during late March dropped to $1280-$1330 per tonne towards late-April.

 

The prices of 316 stainless steel scrap prices remained weak during the month of April, on account of weakness in molybdenum prices. Over the one-month period from late-March to late-April, the prices have dropped from $1800-$1850 per tonne to $1700-$1750 per tonne.

 

On the other hand, steady steel scrap market resulted in marginal rise in chrome scrap prices during this period. The 409 chrome scrap prices edged higher from $290-$330 per tonne during late-March to $300-$340 per tonne during late-April. Similarly, 430 chrome scrap prices too increased from $390-$430 per tonne to $400-$440 per tonne over the month.

 

According to industry experts, the global stainless steel production growth is likely to remain lower over the next two years. As per ISSF estimates, the global stainless steel output during the entire year 2014 had totaled 43.598 million tonnes, rising by 8.3% over the previous year. However, industry expects the output to grow only at 3.9% in 2015 to 43.598 million tonnes. The global output is estimated to further increase by 4.6% in 2016 to total 45.597 million tonnes.

 

The global stainless steel scrap availability is projected to climb higher by 5.5% to 10.12 million tonnes in 2015, when matched with 9.588 million tonnes during the previous year.