The stainless steel industry is anticipated to face ongoing difficulties throughout 2025, with no significant market recovery expected in the near term due to seasonal demand lows and persistently weak prices, according to reports on Kallanish.
Joost van Kleef, chairman of the BIR Stainless Steel & Special Alloys Committee and representative of Oryx Stainless, shared these insights in the most recent edition of Bureau of International Recycling (BIR Stainless Mirror). Meanwhile, Ruggero Ricco, CEO of Nichel Leghe, has noted few signs are pointing to an imminent recovery in the sector’s extended slump.
“The lack of strength in European domestic demand is pushing stainless steel mills to lower prices in a bid to steal customers from each other. This race to the bottom favours Indonesian products, which are much cheaper than integral production with European scrap.” Ricco states.
The scrap market is facing a sharp downturn, with both prices and volumes plummeting as EU producers increasingly opt for cheaper Indonesian nickel pig iron.
Ricco notes that Europe is reassessing its production approach, weighing the continued use of scrap against a potential shift to nickel pig iron or direct slab procurement. He highlights that European scrap prices and demand have been declining steadily over the past six months. Meanwhile, U.S. tariffs have disrupted the global stainless steel market, prompting Asian exporters to divert shipments toward Europe and other regions.
The European stainless flat and long steel markets are experiencing a notable decline, marked by sluggish order activity throughout the supply chain. Prices for stainless steel coil, long products, and scrap continue to trend downward. According to Kallanish passim, mills producing both coil and long products in Europe are cutting prices and grappling with high inventory levels.
Industry insiders, including Ricco and other scrap market sources, indicate that prices for key stainless steel scrap grades like 304 are likely to drop further in June. According to Kallanish, values have already started slipping below €1,200 per tonne ($1,355/t) on a delivered basis.