Market conditions for stainless steel production are not expected to improve in the coming months due to seasonal downturns and sluggish price conditions, and significant difficulties are expected in 2025, Kallanish reports.
Joost van Kleef, Chairman of the International Bureau for the Processing of Stainless Steel and Special Alloys (BIR), representing Oryx Stainless, commented on the latest version of BIR Stainless Mirror.
Ruggero Ricco, executive director of Nichel Leghe, noted that there is currently minimal evidence indicating that the prolonged recession in the sector will end in the near future.
"Weak domestic demand in Europe is putting pressure on the market. stainless steel factories are lowering prices in an attempt to lure customers away from each other. In this race for profit, preference is given to Indonesian products, which are much cheaper than complex production from European scrap," says Ricco
There has been a significant decrease in both prices and volumes in the scrap market, primarily due to EU preferences for Indonesian nickel cast iron as a more cost-effective solution.
Ricco claims that Europe is currently studying its production strategy, evaluating the use of scrap in terms of the possibility of switching to nickel-cast iron or direct acquisition of slabs. Over the past six months, scrap prices and sales volumes have been falling in Europe, and tariffs have significantly affected the stainless steel market, with Asian nations redirecting their shipments to Europe and other countries, Ricco points out.
The European stainless steel sheet and long products markets are experiencing significant decline, characterized by weak consumption targets throughout the value chain and persistent downward trajectory in coils of stainless steel and derivatives, longs and scrap. Roll and long products factories in Europe are lowering prices and reporting large inventories (see Kallanish passim).
Numerous sources in the scrap metal sector, including Ricco, tell Kallanish that they expect further price reductions for the most popular grades of stainless steel scrap, such as Grade 304, in June as prices begin to fall below 1,200 euros per ton (US$1,355 per ton).
Natalia Capra France
kallanish.com
