Posted on 30/05/2016 in category Stainless

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

Expect more price volatility in months to come

The first quarter of 2016 saw normal crude stainless output in the EU that was in line with expectations. Most market participants produced according to budget whereas profitability was still showing potential for improvement. Regarding the availability of stainless scrap, most mills had to increase their primary raw material intake in order to obtain the requested volumes of raw materials. A further deterioration in Fe and FeCr prices increased the burden on the recycling industry.
The second quarter witnessed a further decrease in FeCr pricing whereas ferrous scrap values rallied in April and at the beginning of May.

The forthcoming months will bring slower stainless production owing to seasonal shutdowns. Stainless-related raw material markets will remain volatile as the behaviour of major Chinese producers and traders is influenced not only by supply and demand but also by financial restrictions which can lead to surprises.

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

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