US scrap market expects boost from ThyssenKrupp Stainless meltshop start-up

US stainless scrap market participants are optimistic that the recent start-up of the meltshop at the ThyssenKrupp Stainless facility in Calvert, Alabama, will buoy the domestic market in 2013.

Paragraph entered by Atlantic migration, in order for SteelFirst articles to display correctly on Metal Bulletin.

“Now that [ThyssenKrupp Stainless] is in the mix, that makes things a lot better,” a source at one processor said.

A second processor source agreed, noting that the impact would likely be felt in the surrounding area of the facility. “Maybe the price of scrap is going to go up in a 300-mile radius of that plant,” he said.

Market sources said previously that the meltshop, which has an annual capacity of 900,000 tonnes of stainless steel, could significantly tighten the domestic scrap market and decrease exports of the material from the USA.

A third processor source cautioned that rather than increase overall consumption, the start-up might lead to a shift of market share between domestic producers. “My opinion is that more business will drift away from [other domestic producers to ThyssenKrupp Stainless],” he said.

ThyssenKrupp Stainless, which has not disclosed a 2013 production target for the meltshop, is now part of Finnish stainless producer Outokumpu Oyj following the completion of the merger between Outokumpu and the Inoxum Group.

Some stainless scrap grades saw a slight uptick recently, although market participants said volumes have been thin due to the end-of-year holiday.

Prices for 316 clips and solids are between $2,375 and $2,420 per gross ton, up from $2,310 to $2,350 previously, while 304 clips and solids are steady between $1,680 and $1,750 per gross ton, although offers were as high as $1,770 on Monday December 31.

Nickel prices on the London Metal Exchange received a boost from news that the US Congress had avoided going over the fiscal cliff, with the cash contract improving to $17,425 per tonne ($7.90 per pound) in official trading on Wednesday January 2, up 2% from $17,085 per tonne ($7.75 per pound) on Monday.

What to read next
Following a six-week consultation period, Fastmarkets can confirm it will amend the calculation method for all the average functions on the Fastmarkets platform from Wednesday March 1, 2023.
Consolidation, the recycling of electric vehicle batteries, US steel exports and the benefits of sustainable steelmaking were key talking points at Fastmarkets’ Scrap & Steel 2023 conference in Dallas in January
Green shoots of increased demand will emerge in US ferrous markets courtesy of the Biden administration’s trillion-dollar infrastructure package in 2023, Schnitzer’s executive vice president and chief strategy officer Richard Peach said at Fastmarkets’ Steel and Scrap Conference 2023 in Dallas, Texas
US special bar quality steel prices rose in January in line with rising scrap and alloy costs, according to market participants
European metal industry association Eurometaux has called on the European Commission to follow the lead shown by the Inflation Reduction Act and deliver a “powerful” policy to support the industry in the EU while it tries to keep up with the move to a new generation of energy markets
The fallout from Russia’s invasion of Ukraine is changing global trade flows for bauxite, with Brazilian material once again flowing into China and with the introduction of export restrictions elsewhere likely to influence availability through 2023
We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.