Prices for stainless steel scrap continue to rise
Prices for stainless steel scrap continue to rise

26 October 2022 – The prices for stainless steel scrap, stainless steel products and other raw materials have not only influenced Europe. In Asia too, after China had already led the way, manufacturers now want to raise the prices for stainless steel even further. And the world’s largest nickel producer is facing a rapidly growing spare parts problem.

Stainless steel scrap prices continue to rise

Prices for stainless steel scrap continued to rise significantly in some regions in October. Compared to the previous month, prices for 316 scrap in particular rose by up to 9%. But 304 stainless steel scrap also increased by up to 6% in October.

This is also reflected in the recently published alloy surcharges of the European stainless steel producers. In particular, grades 316 and 316L have increased by almost 5% for November 2022.

Rising stainless steel prices in Asia

Major Taiwanese stainless steel producers are also expected to increase prices in November in response to rising stainless steel prices in China and Europe. But higher raw material costs, such as for stainless steel scrap, nickel and chrome, are also cited as reasons for likely upcoming hikes.

Norilsk Nickel running out of spare parts

The world’s largest nickel producer, Russian mining group Norilsk Nickel, is struggling to meet its demand for spare parts for machinery and equipment due to Western sanctions.

Nickel production not expanding

It is already clear that the mining giant is likely to fall short of its nickel production targets. Looking at the currently published production results for the first 9 months of 2022 compared to the same period last year, Nornickel has so far only been able to reach the level from 2021 and is still more than 5% below the nickel production from 2020.

In 2021, water ingress at two major mines and a major fire at a production facility had hit the group hard.

Group looking for alternatives

According to the group, it is already looking for alternatives for spare parts, machinery and equipment. But the company, which operates under extreme climatic conditions, is likely to face greater challenges in finding substitutes for Western suppliers.

Lawsuit filed against Nornickel

The lawsuit just filed by the Russian aluminium group Rusal against Nornickel for violations of dividend guidelines in a court in the United Kingdom may come at an inopportune time.

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