Stainless scrap market bearish; prices fall
PITTSBURGH — Stainless steel scrap prices are still losing ground amid a bearish outlook as the primary nickel market continues to weaken, according to most processor and dealer sources.
“Europe is better, but not better enough,” one broker said. “Even though the European market is a little better, with the logistics to the wholesale market it has little impact on the market in the U.S. ... And with the current crisis with Greece, it is hard to tell what will happen.”
“Uglier,” one dealer said of the market.
Another market player agreed, describing conditions as “quite the depressing market.”
There doesn't seem to be any news to set off fireworks ahead of the July 4 holiday, and prices fell across the board.
AMM’s assessment of broker/processor buying prices for Type 304 stainless scrap solids dropped to $1,160 to $1,230 per gross ton from $1,210 to $1,255 previously. Little demand has been reported for Type 316 stainless solids, with prices slipping further to $1,480 to $1,570 per ton from $1,570 to $1,660 and Type 304 turnings falling to $985 to $1,005 per ton from $1,025 to $1,075.
Broker buying prices for the ferritic grades followed suit. AMM's assessment for Type 409 stainless scrap solids moved to a range of $275 to $315 per ton from $290 to $315 previously, Type 409 turnings to $180 to $245 per ton from $180 to $270 and Type 430 solids to $335 to $360 per ton from $335 to $380, but Type 430 turnings held steady at $225 to $245 per ton.
“It’s too early to say what the effect of the Greece (situation) and the potential knock-on effects on demand will be, but coupled with the summer lull it is likely we are going to see a significant price slump,” a source at a major processor said, noting that mid-40 cents per pound for nickel-bearing stainless steel scrap seems possible "unless things turn around.”
Spot nickel prices on the London Metal Exchange closed the official session June 30 at $11,680 per tonne ($5.30 per pound), down 7.8 percent from $12,665 per tonne ($5.74 per pound) a week earlier.
- James Lawrence
http://www.amm.com/Article/3466944/Scrap/Stainless-scrap-market-bearish-prices-fall.html
