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| Stainless Steel |
Europe’s stainless steel industry is under intense pressure, with its global production share plunging from 40% to below 10% over the past 25 years. This stark decline was highlighted at the Bureau of International Recyclers (BIR) Stainless Steel & Special Alloys Committee meeting, where experts pointed to aggressive production growth in China and Indonesia as key drivers of market oversupply and margin compression in Europe.
Markus Moll, managing director of SMR GmbH, delivered a sobering assessment, stating that Europe is at serious risk of losing its entire stainless steel supply chain. While global crude stainless steel output is forecast to grow by 4% in 2025, Europe remains the slowest-growing region in the sector.
Import pressure and shifting production geographies threaten not only the economic viability of Europe’s stainless steel mills but also the security of downstream fabrication capabilities. Although stainless steel scrap ratios are climbing globally—excluding India—and stock levels are low, these favorable fundamentals are being undercut by structural vulnerabilities in Europe.
The meeting underscored the growing strategic importance of the recycling sector in securing sustainable raw material flows, especially amid decarbonization and resource security pressures.
ScrapInsight Commentary
Europe’s stainless steel woes signal deeper fault lines in regional industrial policy and global trade dynamics. As imports eat away at domestic production, the region's recyclers could find themselves either squeezed by lower demand or elevated in importance if EU policy shifts toward closed-loop material systems. Whether through tariffs, CBAM enforcement, or green procurement mandates, Europe’s ability to preserve stainless steel capacity—and the scrap ecosystem it sustains—will hinge on swift regulatory action and strategic investment in circular infrastructure.
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