The stainless steel scrap market in the United States is not on sound footing while dealers and processors battle against a shrinking supply chain, Fastmarkets understands.
"Supply issues remain the key factor for stainless prices," one major dealer said, adding that the level of uncertainty had increased with the growing concerns surrounding the spread of the novel coronavirus (2019-nCoV) and Covid-19 disease.The biggest concern among market participants is the lack of supply and the reduced flow of materials being received. "This market has become very complicated with shortages everywhere, the Covid-19 virus, [Section] 232 [import tariffs] and container shortages," one broker said.Prices are being driven by a supply shortage, and all indications suggest a dearth of material will continue to affect the market.Fastmarkets assessed the 316 solids,...