Posted on 02/09/2016 in category Stainless

BIR World Mirror on Stainless Steel & Special Alloys - Issue August 2016

Challenging fourth quarter awaits recyclers

The EU’s crude stainless steel output in the first six months of 2016 was slightly lower (-2.5%) than in the same period last year. Nevertheless, the outlook has remained good despite the fact that German consumer confidence has lost some momentum and industry output is showing some negative development. Together with a correction in the nickel price        (a drop of more than 10%), these factors put a question mark over prospects for this year’s third and fourth quarters.

As a result of higher commodity prices, stainless scrap availability improved and consumption of this raw material remained at good levels throughout the summer period. Although stainless producers have been able to increase their profitability, as results for the first half of the year prove, the stainless scrap processing industry still lacks a sufficient margin for their products and services.

This situation could further deteriorate as the nickel price decline will have a negative effect, most probably on both volumes and margins. The fourth quarter will be challenging for all those active in 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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