BIR World Mirror on Stainless Steel & Special Alloys – Quarterly Report February 2026: Policy change boosts Chinese mills’ interest in securing stainless scrap
A concise summary of the BIR World Mirror on Stainless Steel & Special Alloys – Quarterly Report February 2026. Full version with detailed market reports available in the Members Only section of the BIR website.
While demand for stainless steel scrap has been quite stable in Europe, achievable prices have been capped by continuing imports of nickel pig iron and stainless slabs, it is reported in the latest World Mirror publication released by the BIR Stainless Steel & Special Alloys Committee.
European demand for stainless steel is said to have increased slightly in February. At the same time, the introduction of the EU’s Carbon Border Adjustment Mechanism (CBAM) has added further uncertainty and complexity to the supply-demand balance. Longer term, the CBAM represents a potential support factor as it may reduce the pressure from high-carbon, extra-EU imports and improve the competitiveness of European production.
According to feedback from Italy, the stainless steel market is still characterised by: weak end-user demand, particularly from the automotive and household appliance sectors; prices under pressure, influenced by still-elevated inventory levels along the supply chain; and high energy and raw material costs weighing on margins. In terms of collections and trading, meanwhile, the stainless steel scrap market has been reflecting subdued industrial activity and weak demand.
In Asia, the scrap market underwent a strong rally in the wake of the significant rise in the LME nickel price, which soared from around US$ 14,000 per tonne in mid-December towards US$ 19,000 in late January before easing back. Taiwan’s stainless steel mills showed weak demand for scrap in the fourth quarter of last year, while South Korea’s scrap consumption remained stable but weak from November through to January, with production having subsequently returned to normal following scheduled furnace maintenance. Demand is expected to stabilise further following the conclusion of the Lunar New Year holidays.
Japan’s consumption of stainless scrap continues to be steady. Export volumes have fallen to relatively low levels compared to previous years because mills in Japan are relying increasingly on domestic scrap supplies, and this trend is expected to continue. Meanwhile, China has introduced export controls on stainless steel products, with all overseas shipments of coils, flats and long products now requiring government approval. This policy change, combined with Indonesia’s nickel ore quota reduction, has triggered a rush among Chinese stainless mills to secure raw materials, particularly stainless scrap and nickel pig iron.
India’s stainless steel production has grown 14% year on year to reach 4.27 million tonnes. Correspondingly, stainless steel scrap imports surged 21% in 2025 to reach 1.47 million tonnes. Owing to weak export demand, however, it is suggested that mills are currently in a position to satisfy a significant proportion of their scrap requirements from domestic arisings, bringing attractive pricing and credit term benefits. India is continuing to import semi-finished products such as slabs and billets, but availability is said to be lower.
In the Middle East, stainless steel and special alloys continued to experience stable demand in the fourth quarter of last year, largely supported by construction, oil/gas and desalination projects. For Saudi Arabia, the region’s largest stainless consumer, domestic scrap availability remains limited and so imports are required to meet the many project needs.
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With contributions from its members, BIR publishes periodical commodity reports under the label "BIR World Mirror". These detailed reports exist for Non-Ferrous Metals, Ferrous, Stainless Steel / Alloys, Paper, Plastics and Latin America and provide BIR members with up-to-date information on the respective commodity or market segment.
The report on Non-Ferrous Metals appears once every two months, whereas Ferrous, Stainless Steel, Paper and Plastics are published quarterly. Latin America is covered twice per year.