BIR: Stainless Scrap Market Resilient Amid Policy and Price Swings
Across Asia, scrap prices rallied sharply following a surge in LME nickel before easing.
SEATTLE (Scrap Monster): The latest BIR World Mirror on Stainless Steel & Special Alloys – Quarterly Report (February 2026) highlights a broadly stable yet margin-constrained global stainless scrap market, shaped by trade policies, raw material volatility and uneven industrial demand.
In Europe, stainless steel scrap demand remains steady, but achievable prices are capped by ongoing imports of nickel pig iron and stainless slabs. The rollout of the EU’s Carbon Border Adjustment Mechanism (CBAM) has added short-term complexity to supply-demand dynamics. However, over the longer term, CBAM is viewed as potentially supportive, as it could curb high-carbon imports and strengthen regional competitiveness. Italian market feedback points to weak automotive and appliance demand, elevated inventories and high energy costs pressuring margins.
Across Asia, scrap prices rallied sharply following a surge in LME nickel before easing. Taiwan reported weak fourth-quarter scrap demand, while South Korea’s consumption stayed subdued but stable. Japan continues to rely more heavily on domestic scrap, reducing export volumes. China’s new export controls and Indonesia’s nickel ore quota cuts have intensified raw material procurement activity.
India posted double-digit stainless production growth, lifting scrap imports, while Middle East demand remained firm, driven by infrastructure and energy projects.
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