European stainless steel scrap prices have seen a significant decline over the past week, as sellers have lowered their offers amid waning interest from steelmakers. The stronger euro against the US dollar and a generally weak ferrous market have contributed to this drop, with some offers decreasing by as much as 7%.
Reduced Demand and Increasing Imports
In addition, the rising influx of nickel pig iron (NPI) from Asia has started to influence scrap prices. Originally spurred by a shortage of scrap in Western Europe, buyers have shifted to NPI for its cost advantages. Italian mills are particularly noted for their heavy NPI purchases, with substantial orders also coming from German and Dutch buyers. A trader predicts that these large volumes of NPI will continue to suppress scrap demand and prices, with little recovery anticipated before October.
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