Global stainless steel scrap market faces pressure in Q2CY’25 as substitutes rise, policies lag: BIR report

• Global mills reduce scrap usage, prefer NPI, slabs instead
• India’s scrap buying dips despite rising stainless consumption

The global stainless steel scrap market remained under heavy pressure in Q2CY’25, as highlighted by the Stainless Quarterly Report from the Bureau of International Recycling (BIR). Weak demand, rising use of alternative raw materials, and uncertainty from changing trade policies dampened scrap demand across the world.

Europe

In Europe, as Joost van Kleef of Oryx Stainless pointed out, the system meant to protect against unfair competition is no longer effective. Local mills are losing money even though they use scrap, which is the most sustainable production method. Buyers are turning to cheaper imported slabs and nickel pig iron (NPI), making local scrap-based melting less competitive.

Italy and other parts of Europe saw further drops in scrap prices due to summer holidays and uncertainty over the EU’s Carbon Border Adjustment Mechanism. Buyers are waiting for even lower coil prices before making purchases.

Asia

In Asia, the market remained slow. Taiwan continued to buy semi-finished goods and NPI instead of scrap, while demand in China was affected by tariff concerns and weak construction activity. Stainless coil prices in China were unstable, and mills started to reduce production. South Korea showed some signs of stability as mills restarted, but overall, Asian scrap demand stayed low. Rising freight costs and fewer shipping schedules further disrupted scrap flows in the region.

India

India’s scrap market was also slow. Even though stainless steel consumption rose by 8% y-o-y, scrap buying dropped due to cheaper imports of NPI and semi-finished goods. Ritesh Maheshwari of Shabro International said these imports are making scrap-based production more expensive. New government rules under BIS are meant to support local industry, but full enforcement is still pending. Mills are focusing more on domestic scrap, while recyclers prefer importing and processing Zurik.

Middle East

In the Middle East, stainless steel demand stayed strong, especially in the UAE and Saudi Arabia, supported by growth in construction and tourism. However, as Omar Al Sharif of Sharif Metals noted, the region also faced high raw material costs and shipping delays. Saudi Arabia introduced new anti-dumping duties on Chinese and Taiwanese stainless tubes, aiming to protect its domestic industry.

Superalloy scrap market

The superalloy scrap market was mixed. Prices of Inconel 718 dropped by 8-15% because of high inventories and slow mill activity in the US and Europe. On the other hand, tungsten prices rose due to supply issues in China and Myanmar, and increased buying by aerospace and defence companies. Rosie Hill of Ireland Alloys said that demand from the aerospace sector remained strong, but project delays and uneven orders kept production uncertain.

Outlook

Looking ahead, hopes for a better second half of 2025 depend on clearer trade policies, better freight conditions, and possible mill restocking. However, the bigger trend is clear – scrap demand is under pressure globally as cheaper substitutes and policy delays change the way the market works.