Committee chairman Joost van Kleef highlighted the industry's need to respond continuously to market changes while preparing for future developments. Discussions focused on global stainless steel markets, scrap availability, recycling trends and the European Union's Carbon Border Adjustment Mechanism (CBAM).
Global stainless steel market faces mixed conditions
Ritesh Maheshwari of India's Shabro Metallic presented an overview of market conditions based on the BIR World Mirror report for the first quarter of 2026.
Nickel prices on the London Metal Exchange reached approximately US$19,500 per tonne during the period. Nickel production in Indonesia continued to expand, while steel mills in the United States reported utilisation rates of around 80%.
At the same time, disruptions to shipping routes in the Red Sea increased delivery times between Asia and the Middle East. Freight and insurance costs also remained elevated, affecting international trade flows.
European market participants reported weak financial performance, although conditions showed signs of improvement. The introduction of CBAM contributed to higher costs across parts of the stainless steel value chain. In Asia, supply chain disruptions linked to developments in the Middle East increased production costs. Meanwhile, demand in the United States remained stable, although stainless steel scrap exports fell to their lowest levels in decades during 2025.
Asia reshapes the stainless steel industry
Anand Gupta of Aamor Inox outlined the changing structure of the global stainless steel industry. China remains the largest producer, while Indonesia has expanded rapidly through nickel-based production. India has also emerged as a significant growth market, supported by increasing domestic demand.
According to Gupta, the development models of China, Indonesia and India differ considerably. China has focused on scale and vertical integration, while Indonesia's growth has been driven by access to nickel resources and nickel pig iron production. In contrast, India's stainless steel industry remains more dependent on scrap and domestic consumption.
These differences influence raw material sourcing strategies and are becoming increasingly important as recycled materials gain strategic value within the sector.
Scrap quality and processing gain importance
In mature recycling markets such as Europe and the United States, companies are placing greater emphasis on retaining high-quality scrap for domestic use. Circular economy objectives, carbon policies and traceability requirements are increasingly influencing trade patterns.
While stainless steel scrap remains widely traded internationally, market participants are placing greater focus on quality specifications, domestic demand, logistics and regulatory requirements.
India continues to face a gap between domestic scrap generation and growing demand. Challenges relating to material quality and metal recovery rates mean the country remains dependent on imported scrap.
Industry participants also highlighted that increasing scrap consumption requires advanced processing capabilities. Future competitiveness is expected to depend not only on access to scrap but also on the ability to process and utilise recycled materials efficiently within melting operations.
CBAM remains a key regulatory issue
The meeting also examined the ongoing implementation of the European Union's Carbon Border Adjustment Mechanism.
Julia Ettinger, Secretary General of Recycling Europe, advised industry stakeholders to monitor future developments closely. CBAM introduces carbon pricing for selected carbon-intensive imports entering the European Union, including steel and aluminium products. The mechanism entered its definitive phase on 1 January 2026.
European policymakers are already considering proposals to broaden the scope of the regulation. Potential future changes could extend requirements further down the value chain by covering additional semi-finished products.
Questions also emerged regarding the future treatment of recycled materials under CBAM. At present, post-consumer scrap is not included within the mechanism. However, discussions around recycled content, circularity and carbon accounting continue to develop.
Link between CBAM and emissions trading
Speakers also highlighted the connection between CBAM and the European Union Emissions Trading System.
The emissions trading scheme establishes limits on greenhouse gas emissions and allows companies to trade emission allowances. The system aims to encourage emissions reductions by creating a financial incentive for decarbonisation.
Historically, companies received free allowances to help maintain international competitiveness and reduce the risk of carbon leakage. These free allocations are scheduled to be phased out by 2034 as CBAM becomes fully integrated into the European Union's climate policy framework.
Industry prepares for further regulatory changes
The meeting concluded with a panel discussion involving representatives from BIR, Recycling Europe and the United States-based Recycled Materials Association.
Participants discussed the influence of trade policy on investment decisions and the increasing complexity of international regulatory frameworks. BIR also confirmed that it is preparing a business digest on CBAM and plans to organise a webinar on the subject in cooperation with Recycling Europe.
As policymakers continue to refine carbon pricing mechanisms, the stainless steel recycling sector is expected to monitor CBAM developments closely and assess their potential impact on scrap markets, trade flows and circular economy objectives.
