As per trade sources, the prices of stainless steel scrap gained significantly during the month of April. The prices recorded substantial gains primarily on account of surging Nickel prices. The rise in scrap price was also boosted by higher Stainless steel production.
The 304 grade prices saw a big jump from US$1,520~1,570 per tonne to US$1,710 ~ 1,760 per tonne during April. Also, the prices of 316 quality scrap climbed from US$2,030~2,080 per tonne to US$2,290 ~ 2,340 per tonne.
On the other hand, the prices of 409 and 430 chrome scrap remained unchanged during the month. The April price of 409 scrap remained flat at US$410~450 per tonne. Also, the 430 chrome scrap remained unchanged from the previous month at US$510~550 per tonne.
Several factors contributed to the sharp rise in stainless steel scrap prices during April. The Indonesian mineral export ban squeezed supply of Nickel. The prices of Nickel touched 14-month high during the month. The supplies from Russia too were adversely affected following the Ukraine crisis.
The positive outlook on stainless steel production also has significantly contributed to the rise in scrap prices.According to preliminary data released by the International Stainless Steel Forum (ISSF), the global stainless steel production recorded a growth of nearly 8% in 2013 to 38.1 million metric tons. As per industry forecast, the global production is likely to increase another 8.1% in 2014 to reach 41.642 million tonnes.
Source: Scrap Monster