NEW YORK Stainless scrap
players are optimistic that the recent start-up of the melt
shop at ThyssenKrupp Stainless LLCs facility in Calvert,
Ala., will buoy the domestic market this year.
"Now that (TK Stainless) is in
the mix, that makes things a lot better," a source at one
A second processor source
agreed, noting that the impact likely would be felt most keenly
in the surrounding area. "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 melt shop, 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 United States (
amm.com, Nov. 5).
However, 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 melt shop,
is now part of Finnish stainless producer Outokumpu Oyj
following the completion of the merger between Outokumpu and
Inoxum Group (
amm.com, Dec. 28).
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 Monday.
Nickel prices on the London
Metal Exchange received a bump from news that 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 Wednesday, up 2 percent from $17,085 per tonne ($7.75
per pound) on Monday.