BIR releases Stainless Steel & Special Alloys World Mirror-Feb 2016

By Carolina Curiel (ScrapMonster Author)

February 25, 2016 05:43:32 AM

BRUSSELS (Scrap Monster): The Bureau of International Recycling (BIR) has released the February 2016 edition of World Mirror on Stainless Steel and Special Alloys.

According to the report, raw materials sector needs to implement sizeable production cuts in order to restore price stability in the market over short to medium term. The price erosion among key raw materials has impacted the entire stainless steel value chain, noted BIR stainless steel & special alloys committee chairman Joost Van Kleef. The ongoing short supply of stainless steel scrap can be halted only by rising strength in market prices.

Italy has reported severe shortage of scrap. The constraints on scrap generation have turned out to be the major factor of discomfort for the industry. Elsewhere, dealers from the UK noted that high freight cost has become a problematic issue, especially at a time when stainless steel scrap values have hit their bottom.

The benchmark 304 stainless steel 2mm cold rolled coils prices for March shipment have slipped to US$ 1600-1650 per tonne CIF East Asian ports. This is the lowest levels seen since February 2004. Waning demand situation and overcapacity are cited as the two key reasons for the sharp fall in prices. Lack of buying interest continues to weigh down Chinese stainless steel scrap market.

In South Korea, a visible shift is being observed from use of imported scrap to domestic arisings. The imports are unlikely to pick up before March, sources indicate. Market activity continued to remain subdued in the Middle East, as dealers waiting for recovery in prices. The demand and prices for raw materials are likely to witness improvement during the second half of the current year.

Meantime, India continued to remain a good market for stainless steel scrap suppliers. The domestic consumption by mills is predicted to improve further on the hopes of better economic growth. Market participants fear that Russia may impose ban on scrap exports to Turkey and the EU in the event of these countries introducing anti-dumping sanctions against Russia. Also, a plea to impose anti-dumping and countervailing duties on imports of Chinese stainless steel is under the consideration of the US Department of commerce (DOC).