European Stainless Steel Scrap Prices Edge Up Amid Domestic Demand

Stainless Steel

European stainless steel scrap prices have seen a slight increase over the past week, supported by pockets of domestic demand and continued export market activity. The demand from Germany, in particular, has been reported as the strongest in Europe, driving prices higher. While sellers have been able to secure better profit margins, concerns about the sustainability of the current price levels remain.

Germany Leads Price Surge, Limited Growth Expected

SuperMetalPrice weekly assessment for 304 (18-8) stainless steel scrap solids CIF Rotterdam rose to €1,200-1,250 per tonne, up from €1,210-1,230 per tonne the previous week. Prices in Germany were at the higher end of the range, with strong demand noted in Northern Germany, where scrap was traded at €1,245-1,250 per tonne.

In addition to Germany, the Netherlands and Italy also showed some demand, although not as robust. Despite these price increases, many sellers are wary about the longevity of this domestic demand, indicating that the market could stabilize in the near term due to the mixed sentiment among traders.

Outlook for Nickel and Scrap Prices

The nickel market remains a key factor for stainless steel scrap prices. Despite a recent dip in the price of three-month nickel on the London Metal Exchange (LME), which fell by 2.95% to $15,800 per tonne, traders are expecting the benchmark nickel price to hold steady around $16,000 per tonne for the remainder of the year. This stability is expected to limit any significant upward movement in stainless steel scrap prices.

As traders remain cautious, the mixed sentiment in the market suggests that scrap prices could stabilize or hold firm in the short term, without drastic changes expected in the coming months.