? Global Stainless Steel Price Upturn Anticipated

Posted by freemexy on April 15th, 2019

Rising raw material costs have combined with traditional,Prefab Houses Supplier seasonal factors to provide expectations for a strong recovery in stainless steel prices during the second trimester of 2019. LME nickel costs followed an upward trend from the beginning of January until early March.

Market participants, correctly, predicted a rise in the European ferrochrome contract, in the second quarter. Consequently, suppliers were encouraged to push for an uplift in nominal basis prices. In February, most ex-mill transaction values, for 300-series coils, rose by more than the hike in alloy extras. This introduced the hope, among producers, that basis figures would begin to recover to a level that would represent profitable operations, for the mills.

In March 2019, European alloy surcharges, for austenitic flat products, increased and substantially after falling consistently since the last peak figure, in July 2018. Regional mills proposed further increments to nominal basis values. However, in a climate of moderate demand, buyers consider that the latest rise in alloy extras is as much as the market could withstand.

Nickel values softened, after reaching a high point in early March. As a result, the recently published alloy surcharges for April represent a less dramatic increase than was recorded in the previous month. In this environment, European mills will continue to seek increased nominal basis prices. MEPS believes that they will achieve modest success, in this endeavour.

In the United States, the leading producer, North American Stainless, announced basis price hikes for austenitic hot rolled plate and round bars, effective from April 1. Given the producer's powerful position in the market, these proposals are receiving little resistance. Conversely, in the hot and cold rolled coil sector, steep rises in alloy surcharges were offset by mediocre demand. As a consequence, basis values softened, in March. With further increases to alloy extras published for April and forecast for May US producers are likely to find difficulties in lifting basis prices, in the near term.