BIR: Stainless Scrap Market Resilient Amid Policy and Price Swings
Stainless Steel | 2026-02-17 05:37:57
Across Asia, scrap prices rallied sharply following a surge in LME nickel before easing.
By Paul Ploumis
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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POLL
What will most influence stainless scrap pricing in the coming quarter?
Frequently Asked Questions
- What is the overall tone of the global stainless scrap market?
Broadly stable, but margins remain under pressure due to trade flows, energy costs and raw material volatility.
- How is CBAM influencing the European market?
It has introduced near-term uncertainty but could improve regional competitiveness by limiting high-carbon imports.
- What role did nickel prices play in Asia?
A surge in LME nickel triggered a temporary rally in scrap prices before markets eased.
