12 May 2023 – The Chinese hunger for scrap seems to be awakened if one looks at the current import figures for recycled material into China. Stainless steel scrap in particular is pulling away tremendously. Bank upgrades outlook for producers in anticipation of rising aluminium prices.
Aluminium producers upgraded on expected aluminium recovery
Now, Credit Suisse has upgraded one of the world’s largest US-based aluminium producers to outperform on expectations of a recovering aluminium market.
The firm expects LME aluminium prices to recover on the back of a pick-up in global demand cycles.
China grabs for scrap, imports rise sharply
Stainless steel and steel scrap have been hot commodities in China, along with iron ore. Even though iron ore demand in China rose by a whopping 8.6% year-on-year in the first four months, it still could not keep up with that for ferrous waste.
Stainless steel waste imports increase thirteenfold
Imports of ferrous waste to China went up 230% compared to the previous year. For stainless steel, Chinese imports even increased by more than 1300%.
More EAF capacities to come
More Asian stainless steel producers have announced that they will expand their EAF capacities with a view to reducing CO2 emissions, which will also drive demand for the green raw material there.
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