According to the latest report released by the BIR Stainless Steel & Special Alloys Committee, the EU’s Carbon Border Adjustment Mechanism (CBAM) and steel safeguard measures have significantly contributed to protecting the European market from global overcapacity and unfair competition. During the early part of the second quarter, import penetration into the EU market reportedly fell by around half.
Despite this, prices for standard grades of stainless steel scrap have recently declined due to holiday shutdowns, planned maintenance outages, increased slab imports and weaker order intake. Lower nickel prices, partly linked to Indonesia’s consideration of increasing mining quotas, have also contributed to the weaker market.
European mills maintain cautious purchasing
European stainless steel mills have continued to operate at conservative production levels, maintaining cautious scrap purchasing strategies. Limited scrap availability has provided some support to the market despite relatively weak consumption.
In Italy, demand for stainless steel scrap has remained selective, with mills purchasing mainly to meet immediate production needs. The availability of high-quality scrap continues to be a strategic factor, while increasing importance is being placed on traceability, sustainability and carbon footprint.
Asian markets show mixed demand trends
In Asia, high summer electricity costs have typically weakened stainless steel scrap demand in Taiwan, while consumption in South Korea has remained stable following the completion of scheduled furnace maintenance. In Japan, scrap exports have fallen to low levels as domestic mills have increasingly sourced local material.
In India, most stainless steel producers are focusing on procuring domestic recycled stainless steel in response to London Metal Exchange price volatility, fluctuations in the rupee-US dollar exchange rate and elevated container freight costs. Regional recyclers and processors continue to supply mills on a spot basis with door-to-door deliveries and credit payment terms. However, domestic supply alone remains insufficient to meet mills’ requirements, meaning imported recycled stainless steel continues to be evaluated as an additional source.
US and Middle East markets remain resilient
In the US, industrial sectors including aerospace, construction, energy and data center-related fabrication continue to generate healthy volumes of recycled material. However, steady market conditions have limited margins as surplus material searches for buyers. US tariffs also continue to influence material trade flows.
The Middle East stainless steel and special alloys market has remained resilient despite heightened geopolitical tensions, uncertainty surrounding shipping routes, higher freight costs, elevated war-risk insurance premiums and longer shipping lead times. Purchasing decisions have generally prioritized securing material availability over achieving the lowest purchase price. Across the Gulf Cooperation Council, demand has remained stable, supported by infrastructure development, industrial maintenance, energy projects and downstream manufacturing.
High-quality scrap continues to attract demand
For superalloy recyclers, demand for clean, well-segregated revert and production scrap remains relatively strong, particularly for material with known alloy grades and origins. Material suitable for reuse in high-value applications continues to attract demand regardless of short-term fluctuations in nickel prices.
Although supply chains have become more stable, many manufacturers have not returned to previous purchasing practices, instead continuing to diversify supply sources and reduce exposure to potential disruptions. In the secondary alloy market, buyers are also placing greater emphasis on supply reliability and trusted suppliers rather than focusing solely on the lowest available prices.
