The price of stainless steel is in constant fluctuation due to a number of factors. We expect to see a rise in prices over the coming months and here we offer some details as to the reason why.
Since June, the cost of raw nickel has been increasing and recently hit a two-year high. There were visible gains in June and July, with a gain of a further 13% in August. Strong speculation is driving current prices upwards and there is indication of this in the high number of net long positions on the LME. Also, the SHFE has seen a strong trend towards investment in China, with the Chinese government taking measures against further inflation. There has been a supply shortage for nickel, though this is expected to shrink throughout he remainder of the year.
As the price of nickel and other industrial metals has been rising, chrome prices are also expected to rise in the last quarter of the year; the rise is predicted to be as much as 10%. China has been importing markedly less ferrochrome than usual, which is a significant indicator of this forecast.
A global shortage in supply of Graphite electrodes used in the steelmaking process has lead to sharp price increases. While they dont make a huge amount of difference this can be around $30 / EURO's per tonne.
The price of molybdenum lost around $800 recently, which indicates a price threshold of $22,000 described as ‘hard to break’. A slight rise in price is thus forecast for the coming quarter.
For some time, scrap prices have been rising strongly. There has been a recent hike in the price of both iron ore and coal coke which supports the scrap price, currently at a 15-month high. Expected rises in chrome price is likely to drive up surcharges on ferritic alloys in October and November.
Currencys are constantly fluctuating but strong Euro can over in the past few weeks, has been driving up overall prices across the board.
BS Stainless continue to offer stainless steel products of professional quality at the most competitive price and will keep customers updated. Subscribe to our newsletter to make sure you are aware of the latest developments.