AK Steel's Higher Costs, Lower Prices = Q2 Loss, Stainless Markets Weak

by on

AK Steel has been in the same boat as many other steel producers, such as US Steel, subject to the whims of lethargic ferrous and non-ferrous markets.

According to the Wall Street Journal, the steel company “forecast a steep second-quarter loss due to lower prices for carbon steel products and higher maintenance costs from a planned seven-day outage at its Middletown blast furnace.”

“AK Steel said pricing has been more favorable in recent weeks. The company also announced Thursday it raised its spot prices on carbon flat-rolled steel products for the second time in less than a month. AK Steel reported in April its first-quarter loss narrowed as reduced costs helped mask weaker prices and shipments,” according to the article.

However, AK Steel being a large stainless producer as well, has not been seeing much help from global stainless demand. What are the weekly stainless and nickel price trends?

Current Nickel and Stainless Steel Prices

The week’s biggest mover on the weekly Stainless MMI® was the nickel 3-month price, which saw a 6.2 percent decline on the LME to $14,110 per metric ton. This comes on the heels of a 1.7 percent increase the week before. The nickel spot price fell 6.0 percent on the LME to $14,025 per metric ton after rising 2.0 percent the week before.

today's metal prices - MetalMiner IndXFollowing a 3.3 percent increase in the week prior, the Indian nickel cash price fell 3.8 percent last week.

Chinese ferro-chrome remained unchanged for the week. Prices for Chinese ferro-moly remained constant. The price of Chinese primary nickel fell 0.1 percent after rising 1.2 percent the week before.

Chinese 304 and 316 stainless steel coil and scrap prices all traded sideways last week.

Korean 430 stainless steel coil remained essentially flat from the previous week. Korean 304 stainless coil prices held steady from the previous week.

FREE Download: The latest Monthly MMI® Report – covering the Stainless/Nickel markets!

The Stainless MMI® collects and weights 14 global stainless steel and raw material price points to provide a unique view into stainless steel price trends. For more information on the Stainless MMI®, how it’s calculated or how your company can use the index, please drop us a note at: info (at) agmetalminer (dot) com.