According to a report issued by the Bureau of International Recycling (BIR), in the first quarter of the current year, the crude stainless steel output in the EU 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 iron (Fe) and ferrochrome (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.
BIR stated that the forthcoming months will bring slower stainless production owing to seasonal shutdowns. Stainless-related raw material markets will remain volatile as the behavior of major Chinese producers and traders is influenced not only by supply and demand but also by financial restrictions which can lead to surprises.