NAS Stainless Mill Expansion Strengthens Acerinox’s US Growth Strategy

Acerinox

NAS stainless mill expansion has started operations, giving Acerinox a stronger production base in the US stainless steel market. The Spanish stainless steel and high-performance alloys producer said the expansion at North American Stainless in Kentucky began at the start of 2026.

NAS stainless mill expansion will add 308,000 short tons per year of capacity. This lifts the mill’s annual run rate to 1.85mn short tons from its previous 1.54mn st/yr base.

NAS stainless mill expansion had been delayed from the end of 2025 because of crane repair and revamp work at the site. The start-up now gives Acerinox more exposure to a US market it sees as more stable and attractive than Europe.

The project reinforces Acerinox’s investment preference. The company said US finished stainless base prices have been more stable than European prices, which remain affected by severe swings and the historic lows reached in mid-2023.

US Stainless Market Shows Signs of Recovery

US apparent finished stainless demand fell by 11% year on year in the first quarter. However, demand improved by 5% from the previous quarter, supporting Acerinox’s view that US orders have recently strengthened.

US stainless inventories are now 7% below the historical average and appear stabilised. Deliveries have also grown in recent months, suggesting that the market may be moving beyond the weakest part of the cycle.

North American Stainless operated at an 80% utilisation rate in the quarter, excluding the new expansion. That implies quarterly stainless production of around 308,000st.

The expansion gives Acerinox more leverage if US demand continues to recover. Higher capacity at NAS can support customers in appliances, construction, automotive, energy, industrial equipment and infrastructure applications.

The US market also offers a more attractive pricing environment for Acerinox. Compared with Europe, where stainless producers have faced deeper price volatility, the US provides a clearer platform for investment and margin stability.

Aerospace and Gas Turbines Support High-Performance Alloy Outlook

Acerinox’s high-performance alloys division faced weaker demand from oil and gas and chemical processing customers. Geopolitical uncertainty has slowed investment in those sectors, reducing near-term demand for specialty alloys.

However, the company expects stronger aerospace demand to support Haynes International, a key part of its high-performance alloys business. Aerospace remains an important market for nickel-based and specialty alloys used in engines, structures and high-temperature components.

Industrial gas turbines are another potential growth driver. Demand from AI data centres could support turbine investment as power infrastructure becomes a bottleneck for digital expansion.

This matters because AI data centres require reliable electricity, backup generation and grid reinforcement. That can increase demand for high-temperature alloys used in turbine blades, combustion systems and other demanding energy equipment.

Acerinox’s strategy now has two clear pillars. It is expanding stainless capacity in the US through NAS while positioning high-performance alloys around aerospace and energy infrastructure growth.

The Metalnomist Commentary

Acerinox is using the US market as its growth anchor because stainless pricing and demand visibility remain stronger than in Europe. The NAS expansion also shows how specialty metals producers are aligning investment with aerospace, data-centre power demand and more resilient regional markets.

European Stainless Steel Scrap Prices Rise on Stronger Mill Demand

Stainless Steel Scrap

European stainless steel scrap prices continued to rise this week as stronger mill demand and firmer downstream stainless steel prices supported the market. Both 304 and 316 stainless scrap grades moved higher on a week-on-week basis, reflecting tighter availability and improved buying interest.

European stainless steel scrap prices gained as mills returned to the market more actively for near-term production needs. The 304 stainless scrap solids cif Rotterdam assessment rose to €1,280-1,300/t, compared with €1,250-1,300/t the previous week.

European stainless steel scrap prices also benefited from stronger sentiment in finished stainless steel markets. Traders reported steady enquiries, higher bid levels, and better liquidity as producers moved to secure feedstock.

304 Stainless Scrap Gains as Mills Secure Feedstock

The 304 stainless scrap market strengthened as sustained buying interest pushed the lower end of the price range higher. Sellers were able to achieve improved prices, especially where prompt material was available.

Mill demand remained firm after the previous week’s sharp increase. Producers continued to procure scrap for near-term stainless steel production, creating a more competitive buying environment.

The rise in downstream flat stainless steel prices was a key driver. Stronger finished product pricing encouraged mills to step up scrap purchases after a period of more cautious buying.

316 Scrap Tightens on Limited Molybdenum-Bearing Supply

The 316 stainless scrap market also moved higher, with solids cif Rotterdam rising to €2,300-2,350/t from €2,280-2,330/t. The increase reflected tight availability of molybdenum-bearing scrap and steady mill purchasing interest.

Supply remained limited as some sellers held back material in expectation of further price gains. Others reported reduced availability of prompt tonnage, adding support to the market.

The tighter supply-demand balance strengthened pricing momentum across the stainless scrap complex. If downstream stainless steel prices remain firm, mills may continue to support higher scrap levels.

The Metalnomist Commentary

The stainless scrap market is showing how quickly feedstock prices can respond when mills regain confidence. The key risk is whether stronger finished stainless prices can hold long enough to sustain this buying cycle.

European Stainless Tube Trade Shifts as Policy, Imports and Data Centres Reshape Demand

European Stainless Steel

European stainless tube trade is entering a more selective phase as producers defend margins through higher-value applications, tighter specifications and regional supply advantages. The market remains stable, but it is no longer driven mainly by volume growth.

European stainless tube trade is being reshaped by three forces at once. Imports continue to pressure commodity and process pipe segments. Policy measures such as CBAM and revised safeguards are changing cost structures. At the same time, automotive exhaust demand is declining as electrification advances.

Speakers at SMR’s Stainless Steel Tube and Pipe Market Insights Day in Dusseldorf said Europe is behaving like a mature and cyclical market. Asia remains the main centre of stainless steel consumption and commodity production, while Europe depends more on technical applications, certification and regulatory positioning.

European stainless tube trade is therefore moving away from simple price competition. Producers are increasingly competing on quality, traceability, sustainability, lead times and the ability to serve complex end uses.

Italy-based Marcegaglia Specialties said traditional sectors such as construction, energy, oil and gas, automotive, water and food processing remain the backbone of demand. However, the next stage of competition will depend more on sustainability and product complexity than on basic market expansion.

CBAM and Import Pressure Are Regionalising Stainless Tube Supply

European stainless tube trade is becoming more regional because policy and geopolitics are increasing the value of local supply. CBAM, revised safeguard measures and wider instability are pushing buyers to look more carefully at origin, emissions, delivery risk and compliance.

European producers already operate inside the EU regulatory framework. This gives them an advantage in some higher-value applications where customers require reliable documentation, stable quality and shorter supply chains.

But the policy environment is not simple. Some industry speakers warned that CBAM could become more protectionist than environmental if it raises costs for European downstream processors without fully addressing import competition.

This concern is especially relevant for stainless tube makers. They buy input material under EU cost structures, but still compete with imported finished or semi-finished products in certain market segments.

OSTP chief executive Andrea Gatti argued that CBAM and revised tariff-rate quotas are creating a difficult environment for downstream processors. He said the measures can raise raw material costs for European producers while leaving import pressure unresolved in some product categories.

One concern is the way carbon steel and stainless steel products remain grouped in some quota categories. This can obscure the real level of import pressure in specific stainless segments.

The issue is most visible in process pipe. Overall import penetration in European welded stainless pipe may look moderate, but import pressure is much stronger in process pipe than in automotive or structural applications.

Some imported process pipe is arriving at prices close to European producers’ raw material costs. This creates a serious margin problem for EU producers, especially when they must meet higher regulatory, labour and energy costs.

Asian imports are particularly competitive in pipe and fittings made to ASTM specifications. Around 15-20% of the European market still requires ASTM-based products, often because older engineering standards and end-user specifications remain in place.

This creates an opening for Asian suppliers. Many have long experience producing ASTM-based products and can compete aggressively in segments where buyers focus mainly on price and basic compliance.

Asian producers are also becoming more capable of supplying European-standard material. However, some barriers remain. Hot-rolled feedstock availability, customer qualification and more complex technical requirements still protect parts of the European market.

CBAM adds another layer of uncertainty. Importers and buyers still lack full visibility on the actual carbon values that overseas suppliers will declare. Some emissions disclosures remain incomplete or unreliable.

This creates pricing uncertainty. If importers use default emissions values, CBAM costs may rise sharply. If suppliers provide certified actual data, costs may be lower. But the market does not yet know which overseas suppliers can verify emissions credibly.

For European producers, this uncertainty is both an opportunity and a risk. It may make some imports less attractive, but it also complicates raw material sourcing and customer negotiations.

The broader result is regionalisation. Buyers are increasingly weighing whether cheaper imported material is worth the compliance, delivery and emissions risk. European producers can benefit if they turn regulation into a trusted supply advantage.

However, they cannot rely on regulation alone. Imports will continue to pressure standard grades and process pipe where price remains decisive. Europe’s defence must therefore come from technical capability, service and qualification depth.

Automotive Decline and Data Centres Redefine Growth Applications

European stainless tube producers also face structural demand change in automotive applications. Exhaust-related stainless tube demand is declining as electric vehicle adoption reduces the long-term need for combustion engine systems.

German tubemaker Schoeller Werk said about 40% of its business is still linked to automotive. Around 95% of that automotive exposure is tied to combustion engine applications.

This creates a clear transition risk. Combustion engine exhaust systems have historically used stainless tube because of heat resistance, corrosion performance and durability. Electric vehicles remove much of that demand.

Industry speakers described this shift as irreversible, even if the speed varies by region. Combustion vehicles may remain relevant for some years, but the structural direction is clear.

Marcegaglia also described the shift away from combustion-engine vehicles as a trend that stainless tube producers must manage. The market cannot assume that traditional automotive exhaust demand will return.

This forces producers to find new growth areas. Data centres emerged as one of the clearest near-term opportunities during the Dusseldorf discussions.

Data centre stainless demand is growing because cooling systems are becoming more important. AI workloads, higher server density and larger hyperscale facilities require more advanced thermal management.

Stainless tubes can be used in cooling circuits, heat exchangers and wider water infrastructure. These applications often require corrosion resistance, reliability and long service life.

Gatti said the strongest opportunity may not only sit in outer water infrastructure. Inner cooling circuits also present growth potential as specifications increasingly exclude carbon steel and favour copper or stainless steel.

Copper’s high price is helping stainless steel compete. In some data centre applications, stainless can win substitution from copper on cost grounds while still meeting performance requirements.

This creates a valuable opening for European producers. Data centres are not only a volume market. They require quality, traceability, reliability and tight specifications, which fit Europe’s competitive strengths.

However, Asian competition remains a threat. If data centre projects are specified to ASTM standards, Asian suppliers may still compete strongly. This means European producers need early involvement in specifications and project qualification.

Other higher-value markets may also support growth. Specialist energy systems, premium process pipe, food processing, water treatment and industrial heat exchangers all require more complex tube products.

The key difference is that these markets reward performance rather than only price. European producers are better positioned when customers value certification, documentation, short lead times, sustainability and technical support.

This is why Europe’s competitive advantage increasingly lies in complexity. Producers cannot win every commodity segment against lower-cost imports. But they can defend and grow in applications where failure risk, qualification standards and technical requirements matter.

The next decade will likely reward producers that invest in advanced materials and difficult applications. This includes higher corrosion resistance, special dimensions, better surface quality, stronger traceability and lower-carbon documentation.

Policy could help if it is implemented carefully. CBAM and safeguards may support regional supply, but they must avoid damaging downstream processors through higher input costs or poorly designed quota structures.

The real test for Europe is execution. Producers must turn sustainability and regulation into commercial value, not only compliance costs. That means proving lower carbon intensity, shorter logistics chains and stronger product reliability.

European stainless tube trade will therefore become more segmented. Commodity and ASTM process pipe will remain import-sensitive. Automotive exhaust demand will decline. Data centres and complex industrial applications will become more important.

For producers, the strategy is clear. Europe must compete where technical standards, certification, sustainability and customer proximity matter most.

The Metalnomist Commentary

European stainless tube producers are being pushed out of low-margin commodity competition and into higher-specification markets. The winners will be companies that convert regulation, traceability and technical complexity into pricing power, especially in data centres, energy systems and premium process pipe.

JSL Stainless Steel Sales Rise as Indian Demand Offsets Trade Pressure

JSL stainless steel

JSL stainless steel sales increased in the 2025-26 financial year as strong domestic demand supported broader adoption across infrastructure, mobility, defence and industrial sectors. Indian producer Jindal Stainless sold 2.5mn t of stainless steel during the year to 31 March, up 8% from 2.3mn t a year earlier.

JSL stainless steel sales were driven mainly by India’s internal market. Domestic sales accounted for 92% of annual volumes, showing that the company is prioritising local demand while global trade conditions remain uncertain.

JSL stainless steel sales dipped slightly in January-March to 641,743t from 649,857t in the previous quarter. The company attributed the decline partly to energy-related constraints linked to geopolitical uncertainty in the Middle East.

The result highlights India’s growing role as a stainless steel demand centre. Consumption is expanding beyond conventional industrial uses into electric vehicles, trailers, containers, real estate, defence, aerospace and infrastructure.

Domestic Demand Anchors Volume Growth

Indian stainless steel demand remained the main growth engine for JSL. Government-backed infrastructure programmes and rising preference for longer-life materials supported consumption across multiple end-use sectors.

Stainless steel is gaining ground where durability, corrosion resistance and lifecycle cost matter. This is particularly relevant for coastal infrastructure, transport equipment, public works, defence systems and industrial applications.

Electric vehicles and trailers are also becoming more important. These sectors use stainless steel for strength, corrosion resistance and long-term reliability in components exposed to demanding operating conditions.

JSL’s domestic focus gives it some insulation from weak or volatile export markets. A strong home market allows the company to keep capacity utilisation higher while managing margin pressure from global competition.

The company is also preparing for further growth. JSL plans to increase annual melt capacity to 4.2mn t during the current financial year ending 31 March 2027.

That expansion will strengthen its position in India’s stainless market. However, the company will need sustained domestic demand growth to absorb the additional capacity without weakening prices.

Imports and Energy Costs Shape Competitive Risk

JSL continues to face pressure from Chinese-origin and Vietnamese stainless steel imports. The company warned that substandard material is allegedly being rerouted through ASEAN countries, raising concerns about trade circumvention and domestic input quality.

This issue matters because import pressure can undermine local producers even when domestic demand is healthy. Low-priced or poor-quality imports can distort pricing, weaken margins and create risks for downstream users.

Trade defence therefore remains important for India’s stainless steel industry. Domestic producers need fair competition if they are expected to invest in higher-value capacity and support national manufacturing goals.

Energy costs are another risk. JSL said geopolitical uncertainty in the Middle East affected sourcing of propane, LPG and natural gas used in stainless steel manufacturing.

This shows how stainless steel production remains exposed to energy supply chains. Even when demand is strong, fuel availability and cost can affect output, margins and quarterly shipment performance.

Exports remained steady despite geopolitical conflicts and tariff uncertainty. JSL is building its presence in Japan, South Korea, Taiwan and Germany, supported by its value-added product portfolio.

This export strategy is important because value-added stainless products can help protect margins. Higher-specification products are less exposed to commodity price competition and more dependent on quality, qualification and customer relationships.

The Metalnomist Commentary

JSL’s performance shows that India’s stainless steel market is becoming a domestic demand story rather than an export-led one. The company’s next challenge is to defend quality and margins as imports, energy volatility and capacity expansion reshape competition.

Indian Stainless Seamless Tube Exports Set to Stay Resilient in EU Market

Stainless Tube

Indian stainless seamless tube exports to Europe are expected to remain resilient despite tighter EU safeguard quotas and rising carbon compliance costs. European buyers continue to depend on imported material in product categories where regional stainless seamless tube capacity remains insufficient.

Indian stainless seamless tube exports are being tested by two forces at once. Europe is tightening trade protection and carbon policy, while India is expanding production capacity to serve both export and domestic industrial demand.

The result is not a simple import slowdown. Instead, the European market is likely to become more selective, with buyers continuing to source from India where local supply cannot meet technical, volume or cost requirements.

Speakers at SMR’s Stainless Steel Tube and Pipe Market Insights Day in Dusseldorf said EU safeguard quotas and the carbon border adjustment mechanism will raise costs. However, they said these measures will not remove Europe’s structural need for non-EU seamless tube supply.

EU Supply Gaps Keep Indian Tube Imports Viable

European stainless seamless tube buyers are not abandoning overseas suppliers because domestic mills cannot fully cover demand across all product segments. This is especially true in applications requiring specific sizes, grades, delivery windows or fabrication-linked supply.

Venus Europe managing director Stefan Muller-Bernhardt said price increases in Europe are being driven more by policy measures and cost inflation than by genuine shortages caused by lower imports. This distinction matters because trade measures may raise landed costs without creating enough domestic capacity to replace imports.

Ratnamani Metals and Tubes stainless steel division head MS Randhawa said imports will remain viable where demand exceeds regional supply. Even when buyers face higher tariffs and compliance costs, the need for material can outweigh the added expense.

This is particularly relevant for seamless tubes used in export-oriented fabrication. Products tied to heat exchangers, pressure vessels and engineered systems may still require imported tube input if European supply is limited or too expensive.

CBAM adds another layer of uncertainty. Importers will need to manage emissions reporting, verification and future carbon costs. But the mechanism is unlikely to eliminate Indian stainless seamless tube exports where Europe lacks sufficient domestic alternatives.

Safeguard quotas will have a more direct commercial effect. Tighter quotas can restrict volume flexibility and raise the risk of duty exposure. However, buyers with technical dependence on imports may continue purchasing Indian material even at higher cost.

This creates a more disciplined import market. Indian suppliers that can offer consistent quality, compliance documentation and reliable delivery will be better positioned than low-cost exporters with weaker transparency.

For European buyers, the key issue is not whether imports become more expensive. It is whether domestic producers can replace the material. In many seamless tube categories, the answer remains uncertain.

Indian Capacity Growth and Process Routes Reshape Competition

India’s stainless seamless tube industry is expanding rapidly, but speakers said this should not be viewed only as export pressure on Europe. Indian producers are also adding capacity to serve fast-growing domestic demand.

India’s refining, power, fertiliser, semiconductor, defence and industrial sectors are all increasing stainless seamless tube consumption. These applications require corrosion resistance, pressure integrity and reliable mechanical performance.

India also has low per-capita stainless steel consumption, leaving substantial room for long-term domestic growth. As industrialisation continues, local tube demand should absorb part of the new capacity being added by Indian producers.

Still, exports will remain attractive. Overseas markets often offer larger order volumes, better price realisation and more diversified customer bases. Europe will therefore remain important, even as Indian domestic demand strengthens.

The market is also seeing a technical divide between production routes. Rotary piercing is gaining share because of lower costs and improving process technology. This route is becoming more competitive in mainstream seamless tube applications.

Hot extrusion remains important for more demanding segments. Aerospace, defence, nuclear and nickel alloy applications still require higher-end processing, tighter quality control and stronger technical assurance.

The two production routes are unlikely to converge into one dominant model. Rotary piercing will likely serve broader volume demand, while hot extrusion will remain positioned in premium and technically demanding markets.

This divide matters for Europe. Buyers may use Indian piercing-based supply for standard industrial applications, while relying on hot-extruded material for more critical service conditions.

Indian stainless seamless tube exports will therefore become more segmented. The market will differentiate between commodity-grade volume, engineered stainless products and high-specification alloy tubes.

For Indian producers, the opportunity is clear. Companies that can serve both cost-sensitive mainstream demand and higher-specification industrial applications will be better placed to withstand EU policy pressure.

For Europe, the challenge is also clear. Trade controls and CBAM may protect local producers, but they cannot immediately create missing capacity in specialized seamless tube categories.

The Metalnomist Commentary

The EU’s policy direction will raise the cost of Indian stainless seamless tube exports, but it will not remove Europe’s import dependence. The stronger long-term shift is segmentation: lower-cost piercing will serve volume demand, while hot extrusion will defend premium industrial applications.

Outokumpu Issues Profit Warning Amid Stainless Steel Market Weakness

Outokumpu

Finland-based stainless steel producer Outokumpu has issued a profit warning, revising its guidance for the fourth quarter due to a combination of challenging market conditions, operational setbacks, and falling raw material prices. The company now anticipates its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) for Q4 to be significantly below the €86 million ($90 million) recorded in the third quarter.

Outokumpu cited multiple factors contributing to the revision, including:

• Prolonged maintenance at its Tornio plant in Finland, which exceeded initial expectations of a €10 million impact.

• Weakened stainless steel market conditions, reflecting sluggish demand across the European value chain.

• Negative inventory valuation effects, driven by plummeting stainless steel and scrap prices.

The company hinted that Q4 adjusted EBITDA could approach breakeven levels or even turn negative due to these compounded challenges.

European Stainless Steel Market Pressures Intensify

The European stainless steel market is facing significant headwinds, with demand declining across the value chain. Falling raw material prices and broader economic uncertainties have exacerbated the situation. The Supermetalprice assessment for stainless steel 304 cold-rolled 2mm sheet delivered to northwest Europe has dropped nearly 15% since Q2, averaging €2,550/t. Similarly, stainless steel scrap 304 (18-8) solids cif Rotterdam has seen a sharp 21% decline, averaging €1,155/t.

Outokumpu’s stainless steel deliveries in Q4 are expected to decrease by 0-10% compared to Q3, with the company now expecting shipments to hit the lower end of the range. Total stainless steel shipments fell by 2.23% year-on-year to 459,000 tonnes in Q3, reflecting broader market stagnation.

These conditions have forced Outokumpu to reassess its operational strategies, while other producers in Europe are similarly reducing capacities to address supply and demand imbalances.

Looking Ahead

Outokumpu’s profit warning highlights the broader challenges facing the European stainless steel industry. Demand-side struggles, coupled with falling prices for raw materials and finished goods, are reshaping market dynamics. As Outokumpu navigates through these turbulent times, the focus will remain on mitigating operational inefficiencies while anticipating potential recovery in global demand for stainless steel.

US Stainless Steel Surcharges Fall as Scrap Processor Margins Tighten

Stainless Steel scrap

US stainless steel surcharges fell for many finished flat and bar products in April, putting fresh pressure on stainless scrap processors. North American Stainless, Outokumpu, ATI, and Marcegaglia lowered several published surcharges, reducing the ability of processors to pass higher scrap costs through to consumers.

US stainless steel surcharges for 301 and 304 flat-rolled coil declined by 0.5-1.6¢/lb compared with March. The move came despite a sharp rise in processor 304 scrap solids prices since the start of the year.

US stainless steel surcharges therefore created a margin squeeze across the scrap-processing chain. Processors said mill scrap demand had not changed much, while consumer prices had failed to rise enough to offset higher buying competition for stainless scrap.

304 Stainless Scrap Prices Rise While Mill Surcharges Ease

Supply competition pushed processor 304 scrap solids prices up by 13.5¢/lb since the beginning of the year. However, lower April surcharges made it harder for processors to lift selling prices and protect margins.

NAS, Outokumpu, and ATI reduced April surcharges for 301 and 304 flat-rolled coil. Although 304 flat-rolled surcharges remained 13-15¢/lb higher than a year earlier, the latest monthly decline weakened near-term pricing momentum.

Stainless bar products also moved lower in several categories. NAS and Marcegaglia reduced 303, 304, and 17-4 bar surcharges by 1¢/lb, while Marcegaglia’s 15-5 bar surcharge dropped by 10¢/lb. Marcegaglia also lowered its 416 bar surcharge by 0.5¢/lb, although NAS raised its 416 surcharge by 0.5¢/lb.

316 Stainless Scrap Holds Better on Molybdenum Support

The 316 stainless market showed more resilience because elevated molybdenum prices continued to support alloy surcharges. Flat-rolled 316 surcharges rose by 0.1-1¢/lb in April and have increased by 30-31¢/lb since the start of the year.

Delivered processor 316 solids prices rose by 11¢/lb over the same period. The smaller-volume 316 scrap market remained firmer than 304 because molybdenum-bearing scrap supply is tighter and more directly linked to alloy input costs.

The short-term outlook remains cautious. One processor said May demand could slow from April, suggesting that stainless scrap prices may face resistance if mills reduce buying or if finished stainless demand weakens.

The Metalnomist Commentary

The US stainless market is showing a classic margin conflict between scrap processors and mills. Scrap costs have risen sharply, but lower surcharges weaken processors’ ability to recover those costs unless mill demand strengthens again.

Europa Plant Drives 3Q Rise in Acerinox’s Stainless Steel Output Amid Challenges

Acerinox

Acerinox, a prominent Spanish stainless steel producer, saw an uptick in its steel output in the third quarter of 2024, driven by the reactivation of the Acerinox Europa plant in Los Barrios, Spain. This follows a significant five-month shutdown due to workers' strikes earlier this year. The plant’s resumption in production helped the company achieve a rise in melt shop production from the second quarter, signaling a positive recovery. However, despite the production increase, Acerinox's revenues in the stainless steel segment faced a decline due to ongoing challenging market conditions, particularly in Europe and the US.

Key Highlights from Acerinox’s Third-Quarter Performance:

• Production and Shipments Growth: Acerinox’s stainless steel output rose by 11.85% year-on-year, totaling 473,000 tons in the July-September period. The ramp-up of the Acerinox Europa plant contributed to a notable 23.2% increase in shipments from the previous quarter.

• Market Challenges: Despite the rise in shipments, the company’s stainless steel revenues declined both on a quarterly and yearly basis. Finished stainless steel prices have decreased, primarily due to reduced alloy surcharges, although the base price in the US remained stable.

• EBITDA Decline: The group’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) for the third quarter fell by 9% year-on-year, amounting to €86 million. The group's performance in the January-September period also showed a significant retreat, with EBITDA down by 47%, reflecting the industry's overall weakness.

• High-Performance Alloys Struggles: Acerinox’s high-performance alloys segment experienced a 46% year-on-year decline in EBITDA, driven by a sharp drop in nickel prices. However, the segment saw a 5.9% increase in output, reaching 18,000 tons in the third quarter.

• Strategic Moves and Diversification: In response to persistent weakness in the European market, Acerinox has diversified its portfolio. The company’s recent acquisition of Haynes aims to strengthen its foothold in the US market, especially focusing on higher value-added products. Additionally, Acerinox sold its loss-making subsidiary, Bahru Stainless, for $95 million to improve its balance sheet.

Outlook for Acerinox in Q4 2024:

Acerinox anticipates that market conditions will remain challenging in the fourth quarter. Geopolitical uncertainties, macroeconomic volatility, and market seasonality are expected to impact demand for stainless steel, particularly in Europe. The company has curtailed production at the Acerinox Europa plant in response to low demand and declining prices. However, Acerinox expects its EBITDA for the final quarter to surpass third-quarter levels, thanks to the sale of Bahru Stainless, though adjusted EBITDA is projected to remain lower.

The global stainless steel industry continues to grapple with high production costs, low sales prices, and declining demand, particularly in Europe. Meanwhile, the aerospace sector and the high-performance alloys market are expected to provide some relief for Acerinox as the company focuses on diversifying its revenue streams.

Nickel Deficit Forecast Emerges as Indonesia Tightens Ore Supply

Nickel manufacturing

Nickel deficit conditions are expected to return in 2026 as Indonesia tightens ore supply controls and stainless steel demand continues to grow. The International Nickel Study Group forecasts global primary nickel production of 3.715mn t against usage of 3.747mn t, implying a deficit of 32,000t.

The nickel deficit would mark a sharp change after three consecutive years of surplus. The market recorded surpluses of 175,000t in 2023, 116,000t in 2024 and 283,000t in 2025.

The nickel deficit forecast remains modest, but it carries strategic significance because it depends heavily on Indonesian policy. Indonesia has been the main driver of global nickel supply growth, and tighter controls on ore mining could slow the expansion that previously pushed the market into surplus.

The Middle East conflict is adding another layer of uncertainty. Higher energy prices, inflation pressure and disrupted sulphur flows could affect nickel production costs, especially for high-pressure acid leach operations in Indonesia.

Indonesia Ore Controls Reshape Nickel Supply Growth

Indonesia’s approved nickel ore mining quota for 2026 has been set significantly lower than in 2025. The quota can still be revised, but the initial reduction has already changed market expectations.

The country’s revised mineral benchmark pricing mechanism also took effect on 15 April. The new HPM formula raises base prices for all nickel ore grades and includes cobalt, iron and chromium in the valuation for the first time.

This matters because Indonesian nickel supply is no longer expanding under the same low-cost conditions that drove rapid output growth. Ore access, ore pricing, royalties and contained metal values are all becoming more tightly managed.

The policy impact is not evenly distributed. Eramet’s PT Weda Bay Nickel mine is preparing to enter care and maintenance in May after receiving an initial ore quota of just 12mn wet metric tonnes. This is far below last year’s final permit of up to 42mn wmt.

In contrast, Nickel Industries received quota approvals of 14.3mn wmt, up from 10.5mn wmt in 2025. This shows that Indonesia’s controls are not simply cutting all supply. They are also reshaping which operators receive ore access.

The quota system could therefore become a major competitive factor. Producers with larger approved volumes may gain stronger operating flexibility, while others face lower utilisation, higher costs or temporary shutdowns.

HPAL producers are especially exposed. These plants require steady limonite ore supply and large volumes of sulphuric acid or sulphur-linked feedstock. Tighter ore availability and higher reagent costs can quickly pressure margins.

Disrupted sulphur flows from the Middle East conflict have raised concern over HPAL feedstock availability. This is important because Indonesian HPAL projects have become key suppliers of mixed hydroxide precipitate for battery material production.

If sulphur costs remain elevated and ore prices rise under the new HPM formula, HPAL production costs could increase materially. That would weaken the low-cost supply advantage that helped Indonesia dominate battery-linked nickel intermediates.

Stainless Steel Supports Demand as Batteries Disappoint

Stainless steel remains the main support for nickel demand. INSG said the stainless steel sector grew in 2025 and is expected to expand further in 2026.

This is important because stainless steel still consumes far more nickel than the battery sector. Demand from stainless steel, alloys and industrial uses continues to anchor the primary nickel market.

Battery demand has grown more slowly than earlier expectations. Lithium iron phosphate chemistries have gained market share, reducing nickel intensity in parts of the electric vehicle market.

Plug-in hybrid electric vehicle demand has also outpaced fully battery-electric vehicle demand in some markets. This has limited the speed at which nickel-rich battery chemistries absorb new supply.

The result is a market caught between two forces. Supply growth is slowing because of Indonesian ore controls and higher input costs. However, battery demand is not rising fast enough to create a large structural shortage.

This makes the 2026 nickel deficit highly sensitive to policy and disruption. If Indonesia raises quotas, supply could recover. If sulphur, energy or ore costs worsen, the deficit could deepen.

The forecast also changes the market narrative. Nickel has spent recent years under pressure from surplus supply and rising inventories. A move into deficit, even a small one, could stabilise sentiment and support prices.

Still, the deficit is not yet a sign of broad scarcity. It is a warning that Indonesia’s supply discipline, not battery demand alone, is now determining the market balance.

For producers, cost control and ore access will become more important. For buyers, the focus will shift toward supplier reliability, feedstock route and exposure to Indonesian policy.

The Metalnomist Commentary

The nickel market is not tightening because batteries suddenly absorbed the surplus. It is tightening because Indonesia is putting discipline into ore supply while HPAL costs rise. That makes the nickel deficit more policy-driven than demand-driven.

Macquarie Nickel Price Outlook Turns More Bullish on Indonesia Ore Tightness

Macquarie

Macquarie nickel price outlook has turned more constructive for 2026. The bank lifted its LME nickel forecast to $17,750/t from about $15,000/t. It argues that Indonesia ore tightness is slowing supply growth after years of surplus. As a result, Macquarie nickel price outlook now points to a firmer market floor.

This change matters because Indonesia has driven most global nickel growth in recent years. Rapid expansion in smelting and HPAL capacity pushed refined output well ahead of demand. However, tighter mining quotas and rising domestic ore prices are now changing that pattern. Therefore, the nickel market balance is starting to look less loose.

Indonesia Ore Tightness Is Reshaping the Supply Story

Indonesia ore tightness is becoming the key issue in the global nickel market. Macquarie expects lower mining quotas in 2026 to constrain laterite feedstock for smelters and HPAL projects. That will likely slow refined nickel output growth even as downstream capacity still expands. Consequently, upstream limits are beginning to matter more than downstream ambition.

This shift could also reduce the pace of stock builds. Macquarie expects exchange inventories and producer stocks to stabilize rather than keep rising sharply. That would remove part of the pressure that has weighed on nickel prices. As a result, the market may start pricing scarcity risk more seriously.

Macquarie now sees the 2026 surplus at only 89,000t, down from its earlier 250,000t view. It also expects global nickel supply to dip slightly this year. That is a major change from the 10pc supply growth seen in 2025. Therefore, the nickel market balance looks materially tighter than before.

Stainless Steel Demand Still Anchors the Market

Stainless steel demand remains the strongest pillar of nickel consumption. Macquarie expects stainless production to rise 4.4pc to 67mn t in 2026. That should keep underlying nickel demand firm even as battery chemistry trends become more mixed. Consequently, stainless steel continues to anchor the nickel demand profile.

Battery demand is still growing, but not explosively. Lower-nickel chemistries such as LFP have reduced expectations for EV-related nickel intensity. Even so, Macquarie still expects nickel use in batteries to rise 5pc to 542,000t in 2026. Therefore, battery demand is still supportive, just less dominant than some expected.

This demand mix gives the market a more diversified foundation. Stainless steel provides steady volume support, while batteries still add incremental growth. That combination is healthier than relying on one major demand theme alone. As a result, Macquarie nickel price outlook reflects stronger balance on both sides of the market.

Higher Prices May Be Needed to Sustain Non-Indonesian Supply

Higher nickel prices may now be necessary to keep non-Indonesian supply alive. Macquarie said many producers outside Indonesia remain under margin pressure near or below $15,000/t. Some may need $18,000-19,000/t to operate profitably and justify reinvestment. Therefore, a higher LME nickel forecast also reflects a higher incentive price.

Indonesia still remains the lowest-cost producer on average. However, its cost advantage is narrowing as ore gets more expensive and regulations tighten. That reduces the chance of another unchecked supply wave. Consequently, the market may be moving away from chronic oversupply and toward more managed growth.

The Metalnomist Commentary

Macquarie’s upgrade matters because it reframes nickel from an oversupply story into an upstream constraint story. The biggest change is not demand. It is that Indonesia may no longer be able to expand ore and refined supply without friction. If that holds, nickel prices may stay firmer than the market has been used to.

SHFE Indonesian Nickel Cathode Brands Strengthen Indonesia’s Class I Nickel Role

The Shanghai Futures Exchange

SHFE Indonesian nickel cathode brands have gained a major credibility boost after the Shanghai Futures Exchange approved two Indonesian-produced nickel cathode brands for delivery against SHFE contracts. The approvals cover PTENICO from Eternal Nickel Industry and DX zwdx from CNGR Dingxing New Energy.

The approvals mark an important step in Indonesia’s move from nickel ore and intermediate products toward exchange-deliverable Class I nickel. Indonesia has already become the world’s dominant nickel processing hub, but exchange approval gives its refined metal greater financial-market recognition.

SHFE Indonesian nickel cathode brands also reinforce the role of Chinese-backed industrial parks in building Indonesia’s downstream nickel value chain. Both approved producers are linked to major Chinese groups with strong positions in stainless steel or battery materials.

The development matters because exchange-deliverable nickel sits at the intersection of physical supply, futures market liquidity and industrial procurement. Approval by SHFE gives the brands wider acceptance among Chinese market participants and strengthens Indonesia’s role in Class I nickel trade.

Tsingshan and CNGR Extend Indonesia’s Refined Nickel Platform

Eternal Nickel Industry’s PTENICO brand was approved by SHFE after previously being listed on the London Metal Exchange on 16 December 2025. The company is a subsidiary of Chinese stainless steel producer Tsingshan Holding Group.

The plant is located in the Weda Bay Industrial Park in Halmahera, North Maluku. It uses an electrolytic process and has 50,000 t/yr of nickel cathode capacity, with nickel content of 99.96%.

Tsingshan’s involvement is strategically important. The group transformed global nickel markets through Indonesian nickel pig iron and stainless steel expansion, and it is now extending that influence into refined Class I nickel.

CNGR Dingxing New Energy’s DX zwdx brand was also approved by SHFE. The plant is located at the Indonesia Morowali Industrial Park and also uses an electrolytic process. It has 50,000 t/yr of nickel cathode capacity, with nickel content of 99.96%.

CNGR Dingxing is a subsidiary of CNGR, a major Chinese lithium-ion battery cathode active material precursor producer. This gives the brand a direct connection to battery materials supply chains, not only stainless steel demand.

The LME accepted CNGR Dingxing’s Indonesian nickel cathode brand in May 2024. It also approved cobalt cathode produced by CNGR in Qinzhou, Guangxi, in March, showing the company’s expanding exchange-approved metals footprint.

Together, PTENICO and DX zwdx represent 100,000 t/yr of Indonesian nickel cathode capacity. Their SHFE approval gives Indonesia a stronger position in futures-linked refined nickel supply.

Exchange Approval Changes Nickel Market Positioning

The two brands are the first Indonesian-produced nickel cathodes approved by SHFE for delivery. That is significant because Indonesia’s nickel rise was initially built around ore, nickel pig iron, ferronickel, matte and mixed hydroxide precipitate.

Exchange-deliverable cathode is a different market category. It requires tighter quality control, brand recognition and acceptance by financial and physical market users.

SHFE has approved Chinese-produced nickel cathode brands totalling 121,000 t since 2024. Adding Indonesian brands expands the pool of deliverable material and shows how Indonesia is being integrated into China’s nickel pricing and delivery system.

This could gradually influence nickel market structure. More deliverable Indonesian metal may improve flexibility for Chinese buyers, increase acceptable supply for futures settlement and strengthen the link between Indonesian production and Chinese exchange pricing.

The approvals also come during a period of Class I nickel oversupply. LME and SHFE inventories have risen as new refined nickel capacity has entered the market faster than demand growth from batteries and alloys.

Against that backdrop, brand approval can become a competitive advantage. Producers with exchange-deliverable status may have better access to financing, trade channels and customers that require recognised specifications.

For Indonesia, the approval supports a broader industrial policy objective. The country wants to capture more value from its nickel resources by moving beyond raw ore and intermediate exports into higher-value metal and battery materials.

For China, the approvals deepen supply-chain integration with Indonesian assets. Chinese companies are not only investing in Indonesian mines and smelters; they are building exchange-recognised refined metal capacity that can serve Chinese industrial and financial markets.

The Metalnomist Commentary

SHFE approval of Indonesian nickel cathode brands confirms that Indonesia is moving deeper into Class I nickel, not only bulk stainless and battery intermediates. The strategic issue now is whether this new exchange-deliverable capacity strengthens market liquidity or adds further pressure to an already oversupplied refined nickel market.

European Stainless Steel Market Faces Mixed Trends Amid Price Stabilization

European stainless steel prices have recently stabilized, buoyed by projected supply constraints and unexpected demand spikes, yet the broader market remains under pressure.

Stabilization in Stainless Steel Prices

Over the past two weeks, European stainless steel prices have shown signs of stabilization, largely due to projected supply tightness following production cuts by Acerinox at its Acerinox Europa plant in Los Barrios, Cadiz, Spain, and a maintenance stoppage at Outokumpu's Finnish facility.

An unexpected increase in buyer interest in Germany led to slight price rises. However, the momentum is expected to fade as service centers delay purchases to next year amid persistent low demand across most regions.

Raw Material Insights: Stainless Steel Scrap and Ferro-Alloys

Stainless Steel Scrap

Despite low domestic demand, stainless steel scrap prices saw an unexpected boost last week, fueled by mounting export interest.

Ferro-Alloys

The ferro-molybdenum market has faced high price pressure, averaging $51.10/kg over the past month. Rising material costs and heightened Asian demand have driven prices up, challenging European producers who are focusing on lower-margin steels to sustain operations. Meanwhile, Indian ferro-chrome exports to Europe have contributed to excess supply, driving prices downward in early autumn.

Prices of high-carbon ferro-chrome (65% Cr) dropped by 8% in September, with further declines in October as producers in Kazakhstan and India slashed offers. However, with long-term contracts for 2024 expected to conclude shortly, a price rebound may be on the horizon.

Demand and Market Outlook

Demand for stainless steel and its raw materials remains subdued. Some European steelmakers may shut operations earlier for the winter due to low order volumes. This pessimistic outlook could prolong the market challenges for the remainder of 2024.

China’s Jinhai to Halt Stainless Steel Output Amid High Costs and Weak Demand

Jinhai

China’s Jinhai, a prominent stainless steel producer in Guangxi province, has announced plans to suspend its melt shop production from January 1 for approximately 1 ½ months. This decision follows mounting production costs and weak downstream demand in the domestic market.

Production Halt Details

Jinhai, which operates a melt shop with an annual capacity of 1 million tons, produced around 900,000 tons of stainless steel in 2023, primarily using stainless scrap as its feedstock. The suspension of operations will impact production levels, contributing to an expected decrease in China’s total stainless steel output for the January-February period.

As of Q3 2023, Jinhai accounted for approximately 226,000 tons of China’s overall stainless steel production of 9.92 million tons. The company’s temporary shutdown follows broader industry challenges, including thinner profit margins and the threat of potential losses, particularly among producers in Guangxi and Zhejiang provinces.

Market Outlook and Impact

With production cuts becoming more common across various regions, the stainless steel industry is bracing for a downturn, particularly in light of the upcoming Lunar New Year holiday, which is expected to reduce market activity significantly. The Chinese market is forecast to see a reduction of around 300,000 tons in total stainless steel output during January and February. This will likely have a ripple effect on related markets, including feedstock prices for nickel pig iron and ferrochrome.

In the coming months, market participants are monitoring the situation closely, as production halts like Jinhai’s and soft demand are expected to weigh heavily on pricing dynamics across multiple sectors.

JSL stainless steel fabrication unit anchors India’s downstream growth

JSL stainless steel

The new JSL stainless steel fabrication unit marks a strategic shift into value-added manufacturing for India’s largest stainless producer. Jindal Stainless (JSL) is moving closer to end users by fabricating bridge girders and structural components for the country’s expanding infrastructure sector. The JSL stainless steel fabrication unit is designed to capture demand for sustainable, durable and high-quality solutions as India builds roads, rail, ports and urban transport systems.

JSL stainless steel fabrication unit targets India’s infrastructure boom

The new facility will produce 4,000 t/yr of fabricated stainless steel in the 2025-26 fiscal year. Capacity at the JSL stainless steel fabrication unit is then expected to rise to 18,000 t/yr in the following year as orders scale up. This rapid ramp-up signals confidence in long-term stainless demand from bridges, metro structures and public works.

The company invested about 1.25bn rupees ($14mn) in the plant, located at Washivali, Patalganga near Mumbai. Its 400,000 square foot footprint gives JSL room to add new product lines, automation and modular fabrication cells. As a result, the facility can support complex designs and tighter project schedules for engineering, procurement and construction contractors.

The JSL stainless steel fabrication unit is operated by Jindal Stainless Steelway, a wholly owned subsidiary. This structure integrates service centres, distribution and fabrication under one group, improving margins and delivery reliability. Meanwhile, fabricated output also deepens JSL’s relationships with infrastructure clients, shifting the business mix from commodity coil sales toward engineered stainless solutions.

Moving up the stainless value chain with sustainable components

The unit focuses on components that offer long life and low maintenance in harsh conditions. Stainless bridge girders, structural members and precision assemblies can cut lifecycle costs versus carbon steel in coastal or polluted environments. Therefore, the JSL stainless steel fabrication unit aligns with India’s push for resilient, low-maintenance infrastructure assets.

Downstream fabrication also supports more efficient use of stainless steel through optimized cutting, welding and design. This reduces waste and supports sustainability goals alongside durability and corrosion resistance. At the same time, domestic fabrication capacity helps Indian projects reduce dependence on imported components, improving supply security and project cost control.

The Metalnomist Commentary

JSL’s move into stainless fabrication is a logical next step for India’s largest producer as infrastructure spending accelerates. By combining scale in flat products with project-ready components, JSL can capture more value per tonne and differentiate on service, not just price. The key question now is how quickly the market absorbs 18,000 t/yr of fabricated capacity as India’s bridge and transport pipeline matures.

China's Stainless Steel Production Reaches New Heights in 2024

Stainless Steel

Record Output Driven by Robust Feedstock Supply and Global Demand

China's stainless steel industry achieved a record-high melt shop output in 2024, bolstered by a solid supply of feedstock and a strong demand from international markets. This surge in production underscores China's expanding influence in the global stainless steel market, positioning it to capitalize on growing consumption trends.

Diverse Product Range and Market Dynamics

The production dynamics varied across different stainless steel series, reflecting diverse market demands and applications. The 300 series, known for its high nickel content, saw an increase in output, mainly due to expanded production capacities in Shandong and new capacities in Fujian. In contrast, the 200 series—which contains lower nickel and higher manganese, typically used in construction and manufacturing—experienced a slowdown due to a sluggish real estate sector. Meanwhile, production of the 400 series, which is chrome-based, increased significantly as it began to replace some of the demand for the 200 series.

International Trade and Future Prospects

In 2024, China's stainless steel exports grew by 21.9%, reaching 5.04 million tonnes, supported by competitive international pricing and the availability of raw materials, particularly ferronickel. Imports of ferronickel, crucial for stainless steel production, also rose, largely due to increased shipments from Indonesia. Looking ahead to 2025, China's stainless steel production is expected to continue growing. This forecast is supported by a drop in prices for 304 stainless steel cold-rolled coil and the ongoing availability of cost-effective Indonesian ferronickel, which keeps Chinese products competitively priced in the global market.

India Noble Alloys Prices Remain Stable Amid Domestic Market Challenges

Alloys

Ferro-Molybdenum and Ferro-Vanadium Prices Hold Steady, But Market Sentiment Remains Weak

In India, prices for ferro-molybdenum and ferro-vanadium remained steady in early February 2025. However, the overall sentiment in the domestic ferro-molybdenum market is notably bearish, driven by a weaker Indian rupee. Meanwhile, the limited demand for stainless steel is restricting activity in the ferro-vanadium market.

Stable Prices for Ferro-Molybdenum Amid Weak Sentiment

The price of ferro-molybdenum in the domestic Indian market is holding steady at Rs2,530-2,550 per kilogram ($28.89-29.12 per kilogram) ex-works. Similarly, molybdenum oxide prices have remained unchanged at Rs2,420-2,450 per kilogram, according to recent assessments. Despite this price stability, market sentiment remains low, primarily due to the weak Indian rupee, which has made imported oxide more expensive.

A producer spoke with The Metalnomist and noted that there is no significant excitement in the molybdenum market. The lack of enthusiasm can be attributed to the fiscal year 2025-26 budget announcement and the delays in the shipbuilding industry’s setup, which has further dampened market expectations.

Ferro-Vanadium Prices Stable, But Stainless Steel Demand Remains Low

The price for ferro-vanadium in India stands at Rs1,090-1,100 per kilogram. This market also remains largely stable, although it has seen fewer transactions due to limited stainless steel demand. As a result, the market has become quieter, with little price movement.

However, analysts expect the market to gain more clarity following the Chinese Lunar New Year holiday. It is anticipated that the resumption of industrial activities in China could provide a clearer picture of the price trend and demand in the coming months.

India’s OMC Raises Chrome Ore Base Prices Amid Limited Supply

Odisha

India’s state-owned Odisha Mining Corporation (OMC) has raised base prices for chrome ore at its October auction due to limited availability. The move reflects ongoing challenges in the ferro-chrome market, exacerbated by high production costs and sluggish demand in the stainless steel sector.

Price Adjustments

OMC set the base price for 48-49.99% grade chrome ore from its South Kaliapani mines at 21,026 rupees per tonne (Rs/t) ($250.2/t) in October, an increase from 19,743 Rs/t at its September auction. The base price for 50-51.99% grade ore from Sukrangi mines was set at 21,902 Rs/t, marking its return to the market after being absent in September’s auction.

Despite the price hikes, trading activity remains muted due to the high production costs and subdued demand in the stainless steel market. Domestic producers are seeking higher returns in the local market, partially driven by elevated freight costs in the export market.

Auction Highlights

On October 18, state-owned trading firm MSTC, on behalf of OMC, will auction:

•  23,500 tonnes of 42-54% grade friable chrome ore from the South Kaliapani and Sukrangi mines (up from 22,400 tonnes in September).
•  1,400 tonnes of 32-36% grade lumps, chips, and fines from Bangur mines.

Stable Ferro-Chrome Prices 

India’s domestic 60% grade ferro-chrome prices remained stable at Rs110,000-111,500 per tonne ex-works as of October 17. However, producers continue to face margin pressures due to high input costs and limited market activity.

Market Context

The increase in OMC’s base prices highlights the supply-demand imbalance in India’s chrome ore market. With limited ore availability and sluggish demand in the stainless steel sector, market participants are keeping a close eye on auction outcomes and price trends.

Alabama Scrap Shredder to Strengthen Outokumpu’s Stainless Recycling Loop

Jefferson Iron & Metal

Alabama scrap shredder investment by Jefferson Iron and Metal Brokerage will create a dedicated scrap processing route inside Outokumpu’s stainless steel mill in Calvert. The $22mn project will support a tighter closed-loop scrap supply system for the Alabama stainless operation.

Alabama scrap shredder capacity is planned at about 9,000 short tons per month. The shredder will process scrap generated at Outokumpu’s mill near Mobile, Alabama, and return the shredded material directly into the plant’s operations.

Alabama scrap shredder development is strategically important because stainless steel mills depend on clean, consistent and efficiently prepared scrap. Better on-site processing can reduce handling costs, improve material control and support higher recycled-content production.

Jefferson Shredding and Recycling, a subsidiary of Alabama-based Jefferson Iron and Metal Brokerage, plans to break ground next month. Operations are expected to begin in August 2027.

On-Site Shredding Improves Scrap Control

The project gives Outokumpu a more direct route for recovering and reusing internal stainless scrap. Instead of moving material through a longer external supply chain, the mill can keep more scrap within its own operating loop.

This matters because stainless scrap contains valuable alloying elements such as chromium, nickel and molybdenum. Preserving those units inside the mill system can improve raw material efficiency and reduce exposure to external alloy and scrap markets.

On-site shredding also supports better quality control. Stainless mills need scrap that is properly sized, separated and prepared for melting. Poorly controlled scrap can create chemistry risk, yield loss and operating inefficiency.

The Jefferson-Outokumpu structure is practical. Jefferson brings scrap processing expertise, while Outokumpu gains a dedicated recycling asset linked directly to its stainless production base.

Closed-Loop Recycling Supports US Stainless Competitiveness

The Calvert mill is one of the most important stainless steel assets in the US. Adding dedicated scrap processing strengthens its ability to compete in a market where recycled content, cost control and supply security are increasingly important.

Stainless steel recycling is already a major advantage for the sector. But the value rises when mills can shorten the route between scrap generation, preparation and remelting.

The project also fits wider trends in US metals manufacturing. Producers are trying to localise feedstock, reduce waste, lower logistics exposure and improve traceability.

For Jefferson, the investment expands its role from scrap broker and recycler into an embedded processing partner for a major stainless producer. For Outokumpu, the shredder improves scrap circularity and gives the mill more control over internal material flows.

The 2027 start-up timeline means the project will not affect near-term stainless supply. But once operational, it should strengthen the Calvert site’s raw material flexibility and recycling efficiency.

The Metalnomist Commentary

The Jefferson-Outokumpu project shows that recycling advantage is increasingly built inside the mill gate. In stainless steel, controlling scrap chemistry, size and flow can be as important as securing primary alloy inputs.

Global Stainless Steel Output Sees Growth in 2024

Stainless Steel

Stainless Steel Production Increases Worldwide in 2024

Global stainless steel production saw an impressive rise in 2024, with output increasing across all regions. According to the World Stainless Association, stainless steel melt shop production rose by 5.4% in the first nine months of the year. This increase brings total production to 46.1 million tons (mn t), reflecting strong demand for this critical material used in a variety of industries worldwide.

Regional Growth Across the Globe

Notably, several countries and regions saw substantial gains. The combined output from Brazil, Indonesia, Russia, South Africa, and South Korea surged by 11.2%, reaching 5.86 million tons. This increase highlights the rising production capabilities of emerging and established markets alike. In North America, the U.S. saw a significant boost in production, climbing 9.1% year-on-year to reach 1.5 million tons.

Europe also contributed to the global rise, with its stainless steel production increasing by 4.9%, totaling 4.69 million tons. Even in Asia, beyond China and South Korea, production expanded by 8.1%, reaching 5.39 million tons.

China’s Contribution to Global Production

China, which remains a dominant player in global stainless steel production, saw its output rise by 3.4% year-on-year, reaching 28.63 million tons in the first three quarters of 2024. Despite slower growth compared to other regions, China's output still accounts for a significant portion of the global total, underlining its continued importance in the steel industry.

Conclusion: A Positive Outlook for Stainless Steel Production

The global rise in stainless steel production reflects a robust recovery and ongoing demand across industries. With positive trends in multiple regions, the stainless steel market appears poised for continued growth. As production capacities increase worldwide, the outlook for the global steel market remains strong, driven by both traditional and emerging markets.

Outokumpu Europe Loss Highlights the Pressure on Stainless Steel Margins

Outokumpu

Outokumpu Europe loss became the defining feature of the group’s 2025 performance. The Finnish stainless steel producer reported weaker deliveries, lower sales, and softer earnings for the year. Europe remained the main drag, while the Americas and ferro-chrome divisions provided support. As a result, Outokumpu Europe loss shows how difficult the regional stainless market remains.

The company’s full-year stainless steel deliveries fell 2.3pc to 1.751mn t. Group sales dropped nearly 8pc to €5.47bn as realized prices weakened in both Europe and the Americas. Adjusted Ebitda slipped to €167mn from €177mn in 2024. Therefore, Outokumpu Europe loss reflects both weaker pricing and a more challenging operating environment.

Fourth-quarter performance was even weaker. Stainless steel deliveries sank 13.5pc to 365,000t, hurt by soft demand and temporary disruption from a new ERP rollout. That rollout affected supply-chain planning in Europe during the quarter. Consequently, operational execution added to already fragile market conditions.

European Stainless Steel Demand Remains the Core Problem

European stainless steel demand remains the biggest weakness in Outokumpu’s portfolio. The company’s European business swung to an adjusted Ebitda loss of €46mn in 2025, compared with a €58mn profit in 2024. Deliveries in Europe fell 6pc to 1.148mn t, while realized prices dropped sharply. As a result, Outokumpu Europe loss was driven by both lower volumes and thinner margins.

The fourth quarter showed even deeper stress. Adjusted Ebitda in Europe deteriorated to negative €56mn, worse than the negative €32mn recorded a year earlier. Deliveries in the region dropped 23pc year on year to 223,000t. Therefore, European stainless steel demand remains too weak to support profitable utilization.

Outokumpu is responding with restructuring. The company is targeting €100mn of structural annual cost savings by the end of 2027, mainly in Europe. It also booked €34mn of restructuring costs in the fourth quarter tied to personnel reductions. Meanwhile, pricing and capacity utilization continue to weigh on margins across the region.

Ferro-Chrome Earnings and the Americas Help Offset the Weakness

Ferro-chrome earnings and the Americas business helped prevent an even weaker group result. In the Americas, adjusted Ebitda rose to €102mn from €59mn in 2024. Deliveries increased 4.36pc to 622,000t as some customers shifted toward domestic suppliers during tariff changes. As a result, the Americas became the clearest positive area in the group.

The ferro-chrome division also delivered another solid year. Adjusted Ebitda rose to €138mn from €106mn, marking a third consecutive annual improvement. Deliveries increased 6pc to 395,000t, supported by stronger external demand and lower variable costs. Therefore, ferro-chrome earnings remain one of the company’s most reliable profit supports.

Outokumpu also continues to position itself for a lower-carbon future. The company confirmed a $45mn investment in a US pilot plant for low-CO₂ chromium metal and enriched ferro-chrome technology. Management also believes CBAM could improve its relative competitiveness because of its lower carbon footprint. However, management still says demand in Europe and North America remains subdued and recovery evidence is limited.

The Metalnomist Commentary

Outokumpu’s results show a familiar European steel problem: cost actions and regulation can help, but weak demand and price pressure still dominate the near term. The stronger Americas and ferro-chrome divisions give the company breathing room, yet Europe remains the business that will decide whether recovery becomes real in 2026.