BIR World Mirror on Stainless Steel & Special Alloys - Issue May 2017

Strong trends turn negative

The first quarter of 2017 brought strong crude stainless production in all key markets worldwide. Consequently, demand for stainless steel scrap was also strong and the underlying price levels attractive. This was supported by rising nickel prices and a significant increase in chrome prices.

Unfortunately, this general trend ended in March and, additionally, chrome prices dropped at the beginning of the second quarter. This new, negative trend is expected to continue in the forthcoming weeks and months, with the market believed likely to remain weak for the rest of the second quarter and over the summer period.

Production of stainless has been at high levels and, in following the normal business cycle, it will be lower during the summer months. In China, crude output has been surprisingly high too, which will lead to increased levels of final product in the region.
All in all, the second half of 2017 is expected to be challenging for the recycling of stainless steel.

Joost  van Kleef (Oryx Stainless B.V.),
Chairman of the BIR Stainless Steel & Special Alloys Committee

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