Market update July 09
Prices are expected to increase again in August mainly due to higher commodity price,s Nickel remains strong around 16,000 USD per tonne, molybdenum price (which effects 316) is trading at over 11 USD per pound the highest this year and lastly Ferro Chrome prices for July – September have just been increased by 26% (this effects ferritic stainless most i.e. 430) As a result surcharges are expected to rise in August by around £80 per tonne for 304 , £140 for 316 and £25 for 430. Furthermore one of the largest Nickel mines is at Sudbury in Canada where the employees have voted in favour of strike action.
Supply of material is now becoming lengthier with most European mills approaching summer shut downs of at least four weeks distributor stocks are being rapidly depleted. Longer term there is no sign of weakening prices with the huge Chinese market showing signs of recovery, linked to all the cut backs in production of both stainless steel and the commodities used in its production the outlook for the next six months is for higher prices.