Booming mill demand lifts stainless steel scrap prices

By Paul Ploumis (ScrapMonster Author)

April 29, 2016 02:46:11 AM

SEATTLE (Scrap Monster): The rising scrap demand from mills along with stable market for nickel prices have resulted in decent recovery in stainless steel scrap prices during the month of April this year. The market participants from stainless steel sector predict lesser chance for stainless steel scrap prices to fall significantly lower from the current levels.

The prices of 304-grade scrap were up by almost US$50 per tonne during the month from US$ 980-1030 per tonne to US$ 1,030-1,080. The prices of 316-grade stainless steel scrap materials too edged higher by nearly US $50 per tonne over the previous month during April this year. The prices increased from March 2016 levels of US$ 1,280-1330 per tonne to US$ 1,330-1, 380 per tonne.

Chrome-grade stainless steel scrap prices too increased during the month. The chrome-409 quality scrap prices averaged around US$ 200-240 per tonne, whereas chrome 430-grade scrap prices ranged between US$290 per tonne and US$330 per tonne. The prices of 409 and 430-grade chrome scrap had averaged at US$ 170-210 and US$ 260-300 respectively during end-March 2016.

Global nickel markets ended in small deficit of 4,400 tonnes in January-February 2016 with apparent demand exceeding production. The calculated full year surplus had stood at 10.8 kt during the whole year 2015, according to the latest data released by the World Bureau of Metal Statistics (WBMS). World Nickel mine production was 317.7 kt in January-February 2016, 2 kt lower when compared with the corresponding period during previous year. Refined Nickel consumption during Jan-Feb ’16 surged higher by 32 kt when matched with the previous year. Nickel smelter consumption was 165.5 kt in February this year. A firmer nickel market has led to optimism among scrap market participants.

According to recent statistics published by the International Stainless Steel Forum (ISSF), the global stainless steel production dropped slightly by 0.30% during the year 2015, in comparison with 2014.