Stainless steel scrap prices see major cut during August

CANTERBURY (Scrap Monster): The falling scrap demand from mills during holiday season along with sharp decline in nickel prices have resulted in huge decline in stainless steel scrap prices during the month of August this year.

The prices of 304-grade scrap dropped almost US$140 per tonne during the month from US$ 1240-1290 per tonne to US$ 1100-1150. The prices of 316-grade stainless steel scrap materials plunged by nearlu 9% over the previous month during August this year. The prices fell sharply from US$ 1570-1620 per tonne to US$ 1430-1480 per tonne.

Meantime, chrome-grade stainless steel scrap held almost steady during the month. The chrome-409 quality scrap prices averaged around US$ 270-310 per tonne, whereas chrome 430-grade scrap prices ranged between US$370 per tonne and US$410 per tonne.

Nickel prices plunged heavily during the month, falling by almost 17% over the previous month. The Chinese move to devalue its currency triggered fears of further slowdown in metal demand, sending nickel prices to as low as US$ 9,100 per tonne from the highs of around US$ 11,000 per tonne during the previous month. Although, prices managed to recover from these lows, price volatility is expected to dominate raw material market, experts say.

Meanwhile, stainless steel scrap prices by European scrap producers have dropped sharply during the month of August this year. The Italian stainless steel scrap quotations have declined by nearly €100 per tonne during the first week of August, in comparison with those during the initial week of July this year. The selling price of grade 304 scrap by merchants in Italy and France during early August were at €1,100 per tonne delivered, while those of grade 316 scrap declined to €1,500 per tonne delivered. Meantime, quotations from Italian scrap producers for grade 304 scrap stood at €1,260 per tonne delivered. The quotation for grade 316 scrap ranged between €1,580 per tonne and €1,590 per tonne delivered, sources indicate.