Author: Paul Ploumis
27 May 2015 Last updated at 06:18:50 GMT
BRUSSELS (Scrap Monster): The Bureau of International Recycling (BIR) has released the Stainless Steel & Special Alloys World Mirror May 2015 edition.
Low nickel price has resulted in lesser availability of stainless steel scrap. However, competition among scrap suppliers remained high, according to Joost Van Kleef, Chairman, BIR Stainless Steel & Special Alloys Committee. Meantime, scrap ratios in China remained steady at 30% to 35%. Nickel pig iron continued to remain as the preferred raw material choice for Chinese stainless steel industry.
Russia has decided not to implement ban on scrap exports from the country. As per earlier government decision, the ban was supposed to come into effect from April onwards. However, the decision has now been put on hold following consultations with scrap industry leaders.
The stainless steel mills’ order book continues to remain thin in the US, thereby resulting in a lower demand for scrap. Scrap dealers continue holding on to their stocks as export sales too remain weak.
The demand for scrap in Italy has resurged following rise in production of stainless steel during the second quarter of the year. The anti-dumping duties charged on Chinese and Taiwanese stainless steel products resulted in marked improvement in domestic European stainless steel production. However, supply continues to remain weak as dealers are reluctant to sell at current low prices.
The Middle East region too witnessed weak prices in tandem with global market. However, Dubai reported increased trading activity on account of construction works for the World Expo 2020. In particular, 304 and 316 grade scraps are seen witnessing huge demand.
The nickel stocks at LME warehouse have exceeded 440,000 tonnes. The stocks have increased by nearly 25,000 tonnes since the start of the current year.