CHINA'S STEEL RECOVERY TO PROVIDE A BOOM IN SCRAP STEEL USE POST PANDEMIC
STAINLESS STEEL MARKET RECOVERY
China’s economy for scrap metal has made a much-needed recovery post-pandemic, as part of their metal-intensive stimulus plan.
With a decline in stainless steel consumption amidst the pandemic last year, the global market for stainless steel production looks to have a surge in growth, with scrap stainless steel to benefit from a price increase.
CHINA'S DOMINANCE IN THE STAINLESS STEEL MARKET
China & Indonesia have increased their global steel developments with their combined share of stainless steel consumption rising from 52% to 64% as of last year.
With a massive reliance on nickel, the scrap ratio of stainless steel production has led to 37% in 2020 from 42% as of 2017.
As such a predicted increase in scrap use in China has pushed them to re-evaluate their carbon emissions & environmental impacts from raw material production, pushing the need for better & greater use of scrap steel.
The stainless steel industry has recovered from the impacts of the pandemic & will continue to lead nickel demand. The battery market for electric vehicles has become the second-largest user of nickel by a large margin.
GROWTH OF BATTERY SECTOR TO INCREASE DEMAND
Long term growth in the nickel market has come from the battery sector, driven by green energy initiatives with global electric sales doubled since 2020.
Global nickel units needed for EV battery production have led to an increase in production by a factor of four or five by 2030!
The market has shown concern with the availability of nickel units due to the huge demand from the battery sector.
SCRAP STAINLESS STEEL PRICE FORECAST
A revival of the European steel demand will follow suit from the collapse seen from COVID-19.
Worldwide demand for ferrous scrap metal is to be expected following an economic ‘bounce-back’ post pandemic. China’s willingness to import certain metal grades will be a key driver for higher scrap metal prices in global markets.
China’s 5 year plan is set to cut crude steel production & will focus on a larger capacity for scrap-intensive electric furnaces which should benefit scrap metal recyclers & the metal industry as a whole.
Industry experts have predicted that with China reducing their reliance on iron ore there will be an increase of scrap metal & steel billets to be expected.
China’s demand for scrap steel could jump over 20 million tonnes in 2022, with yearly imports to jump up 10 million tonnes. This has not been seen for 10 years . China’s crude steel production is also set to peak next year.
SCRAP STEEL IS A COMMODITY, NOT WASTE!
With changes to import regulations on scrap metal, certain materials have now been seen as waste.
This has since created an issue of scrap metal such as scrap steel being viewed as a waste division in Europe.
This has since caused many issues with metal recyclers reinforcing the view that scrap is a raw material & needs the credit it deserves.
The price of Scrap Metal & Scrap Steel in particular changes regularly with market demand & supply.
On our Award Winning Industry Network we connect homes and businesses nationwide by providing an exceptional metal recycling service near you!
Our members regularly update their price in line with the regional price per tonne, so you can rest assured that you will receive the best scrap metal prices for your scrap steel.
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Scrapping your steel & scrap metal with us is simple, easy & convenient!
Simply fill in the scrap metal form, where we will be in touch to arrange a quick & reliable scrap steel collection near you!
All we require from you is some photo ID & proof of address as requirement under the Scrap Metal Dealers Act 2013.
We will handle the rest!