A look at the current price trend for stainless steel in Europe and how nickel and stainless steel scrap are influencing it. And in the UK, domestic companies in particular are benefiting from the current economic growth.
Stainless steel price trends in Europe for September 2024
The EU mills' stainless steel alloy surcharges for September 2024 are about to be published. Even though the dinosaur alloy surcharge in the pricing of stainless steel now actually belongs in a prehistoric museum, people unfortunately still like to look at it. And this despite the better knowledge that the Electric Arc Furnaces (EAF) of the EU mills have had to be filled with more and more stainless steel scrap for years and have now reached a proportion of more than 90%.
Nickel price remains robust despite volatility
Even though the nickel price has fallen compared to the alloy surcharges from August 2024, the average price on the LME for August is currently around 1.7% higher than in the previous month of July. This is despite the continuing market distortion caused by sanctioned and therefore almost unsaleable Russian nickel (share of LME country of origin stock approx. 23.5%, as at 31 July 2024) on the LME commodity exchange.
Stainless steel scrap tight in Europe for months
If you combine this with the quarterly and half-yearly reports already published by EU stainless steel manufacturers for 2024, one of the biggest challenges at the moment is the very limited availability of stainless steel scrap and the associated price increases. This trend has been ongoing since at least the first quarter of 2024 and has already been addressed by European recycling associations.
Tight availability, rising demand, empty warehouses
As the demand for stainless steel continues to grow, the price trend in Europe for September 2024 is expected to remain positive. The stainless steel market has been steadily increasing over the years due to the durability, strength, and corrosion resistance properties of the material. Moreover, stainless steel has a wide range of applications across several industries, including construction, automotive, and food processing, which further contribute to its demand.
In addition, the stainless steel market is likely to benefit from the increasing focus on sustainability and the growing adoption of green technologies. The metal is fully recyclable and can be reused in production processes with minimal energy input, making it an environmentally-friendly choice.
Furthermore, the market is expected to witness steady growth due to favorable government policies and investments in infrastructure development. The increasing construction activities, especially in developing economies, are expected to drive the demand for stainless steel in Europe.
Overall, the price trend for stainless steel in Europe for September 2024 is projected to remain positive, with growing demand and favorable market dynamics fueling its growth. This presents a favorable outlook for the stainless steel industry, indicating positive growth opportunities for manufacturers and investors in the coming years.
