Stainless Steel Prices Increase!
An independent company MEPS have announced that the worldwide price of stainless steel could increase throughout the next six months and we could see an increase of around 25% in benchmark stainless steel products.
As the cost of input and inventory building in the supply chains across the world increase then so too much the price of stainless steel. Customer stock levels are low at the moment globally as buyers have been reluctant to purchase stainless steel products due to the current economic climate. This in turn has pushed the average figure globally for cold rolled type stainless steel 304 to a 21 month low in December 2011.
However, the last few weeks have seen nickel prices increase by 10% and chromium prices are set to follow. With the scrap costs increasing also it all adds up and thus this could lead to stock replenishment by distributors and end users so that they can buy ahead, plan ahead and not be hit with high stainless steel prices as a result of rising mill costs.
Higher order volumes and better market conditions for raw material suppliers will mean that there should be increased stainless steel prices in the coming months.