Stainless steel scrap saw further price declines during September

By Paul Ploumis (ScrapMonster Author)

November 03, 2015 07:45:11 AM

SEATTLE (Scrap Monster): The falling scrap demand from mills along with sharp decline in nickel prices have resulted in huge decline in stainless steel scrap prices during the month of September this year. The mill orders weakened further during the month, leading to sharp cut in all grades of stainless steel scrap.

The prices of 304-grade scrap dropped almost US$70 per tonne during the month from US$ 1070-1120 per tonne to US$ 1000-1050. The prices of 316-grade stainless steel scrap materials plunged by nearly 7% over the previous month during September this year. The prices fell sharply from US$ 1410-1460 per tonne to US$ 1310-1360 per tonne. Quotes closer to US$ 1100 per ton for 304-grade scrap were heard only from south of Europe.

Chrome-grade stainless steel scrap prices too dropped during the month. The chrome-409 quality scrap prices averaged around US$ 250-290 per tonne, whereas chrome 430-grade scrap prices ranged between US$350 per tonne and US$390 per tonne. The prices of 409 and 430-grade chrome scrap witnessed a decline of nearly US$20 per tonne when compared with the previous month.

According to International Nickel Study Group (INSG), the world primary production of nickel is expected to drop in 2015 and 2016. The production which had totaled 1.994 million tonnes in 2014 is projected to slide down to 1.954 million tonnes in 2015 and drop further to 1.942 million tonnes in 2016. On the other hand, consumption is expected to rise steadily in the next two years. The nickel consumption for 2015 and 2016 is projected at 1.905 million tonnes and 1.965 million tonnes in 2015 and 2016 respectively. The global consumption of the metal had totaled 1.863 million tonnes in 2014.

Meantime, LME Nickel prices fell below the 60 and 40-day moving average, and closed at USD 10,045/mt on Friday. Despite production cuts announced by major miners, the prices have failed to recover.