According to the Bureau of International Recycling (BIR), demand for stainless steel scrap in Europe remains relatively stable, although achievable price levels continue to experience downward pressure due to robust imports of nickel iron and stainless steel slabs.
European demand for stainless steel showed moderate improvement in February this year. However, the implementation of the EU Carbon Border Management Mechanism (CBAM) has introduced additional uncertainty into the regional balance of supply and demand. Over the long term, CBAM is expected to provide structural support by limiting competitive pressure from higher carbon imports and strengthening the position of domestic producers.
Weak downstream demand puts pressure on the Italian market
Market feedback from Italy shows operating conditions remain challenging across the stainless steel sector. End-user demand continues to lag, particularly in the auto and appliance industries, while elevated inventory levels across the supply chain are keeping prices under pressure.
At the same time, persistently high energy and raw material costs are squeezing manufacturers' profits. Scrap collection and trading activity reflect subdued industrial production and weak recycling consumption.
Asian stainless steel scrap markets react to nickel price volatility
In Asia, stainless steel scrap markets recorded strong gains following a sharp rise in London Metal Exchange nickel prices, which rose from around $14,000 US per tonne in mid-December to almost US$19,000 per tonne by the end of January last year. easing.
Taiwan stainless steel producers reported weak scrap demand in the fourth quarter of last year, while consumption in South Korea remained stable but subdued in the November-January period. Production levels have since normalized following scheduled furnace maintenance, and demand is expected to stabilize further after the Lunar New Year period.
Japan's stainless steel scrap consumption remains stable, although export volumes have declined as domestic factories increasingly favor local materials.
Chinese policies and Indonesia changes raw material flows
