Jun 13, 2023
European stainless scrap prices approach rock bottom
2023-07-11
European stainless steel scrap prices are reaching rock bottom, some sellers believe.
If producers in France, Italy and Spain intend not to idle their plants in July, they will need to purchase material and prices cannot fall any further, they say. In all European countries, an extreme shortage of 304 and 316 is reported with sellers struggling to procure material. Prices in Italy, France, Belgium and Germany are plummeting versus May. Teh drop is over €250/tonne ($269) due to heavily reduced sales of long and flat products, and local mills reducing output to balance demand and supply, sources tell Kallanish.
Domestic grade 304 prices are hovering at €1,200/t delivered on average for 304 blended with a less pure grade. For 316, not much in demand this month, small-tonnage contracts are rumoured to be between €2,300-2,350/t delivered on average. Limited export deals are also reported this month and sellers talks about “a dead market”.
While 304 values may reach about €1,100/t this month, a stainless scrap seller says that below this price level there is no scrap collection. July production plans in Europe remain unknown for the moment while in August some mills plan to implement long summer maintenance works. Scrap prices reaching rock bottom will be the starting point also for coils price stabilisation or recovery. Flats values in Europe are plummeting. Coils buyers who spoke to Kallanish expect cold rolled coils to reach the level of €2,100/t delivered in Europe in the coming weeks on the backdrop of an unprecedented price landslide related to uncertainty and weak consumption.
Natalia Capra France
Source: Eurometal
