Oct 25, 2022
Global scrap traders warn of downturn in prices
2022-11-10
Demand for stainless steel scrap is low with suppliers looking to markets in Asia for new demand, the Bureau of International Recycling heard at its Dubai convention.
Omar Al Sharif, of the Sharif Metals Group in the United Arab Emirates, said sales prices for stainless steel in Europe had fallen more rapidly than ever amid tepid demand and record levels of imported finished goods.
Al Sharif said: “Faced with plenty of finished products in stock, producers are implementing some of the lowest capacity utilisation rates ever known and are even laying off workers in some instances.
“Under these circumstances, both demand and prices for stainless scrap remain very low - especially as operators have expensive raw materials still in stock. As a result, many scrap sellers have looked to export scrap, including to Asia.”
Robert Messmer, chief analyst raw materials at Steel & Metals Market Research, suggest to the convention that tackling excessive water leakage rates in major cities could boost the stainless steel industry and offer fresh market opportunities for scrap recyclers and traders.
He said the cities of Naples, Oslo and Glasgow - as examples - each lost more than 30% of their water through leakages while those with stainless steel pipes included Tokyo, Seoul and Taipei.
Those three cities had cut their leakage rates by more than 10%, 25% and 15% respectively.
Messmer said traditional uses of stainless steel in the automotive industry, such as in exhaust units for internal combustion engines, were diminishing as that industry moved to electric vehicles.
He also discussed price drivers and inhibitors for scrap, and said the price outlook had improved with less scrap generated as manufacturing growth slows and Russian exports remain limited. But low demand from the mills and low trading activity were dampening at the same time dampening prices.
Source: MRW
