Stainless Steel prices continue to increase
Stainless Steel prices have followed the growth in commodities and continue upwards. European mills have increased both surcharges and base prices as demand remains strong. Lead times have extended and some market shortages are evident.
General demand for stainless steel has grown across all sectors automotive to oil and gas and all regions from Europe to the Middle East; this has strengthened the demand for Nickel which this week hit a 34 month high over $29,000 per tonne on the London Metal Exchange (LME). Surcharges which are calculated monthly reflect values of commodities and their effect on stainless steel based on price and content, at around 8 – 10% Nickel is a key element. Listed below are the surcharges for March all of which show an increase of between £90 and £151
304 1700 GBP
316 2644 GBP
*note these apply on top of base prices
In addition a base price increase for April deliveries was announced by European manufacturers of £80 per tonne. This means that by April a total increase of £170 per tonne for 304 and £231 for 316 materials. These price increasea will affect all key products stainless steel wire, coil, plate, blanks, banding, wing seals and fixings.
With demand forecast to continue the outlook is for prices to remain strong throughout the next quarter and into the second half of 2011.
If you have any requirements please contact us and we will endeavor to support you to reduce the impact of any price increases and support with supply scheduling where practical.