The monthly Stainless MMI® registered a value of 79 in July, a decrease of 4.8 percent from 83 in June.
The stainless steel index took a big hit this past month dropping four points from 83 to 79, largely on the back of falling nickel prices. Unlike some of the other index values released this month, the Stainless MMI® still contained a number of price points that held steady including ferro-chrome, ferro-moly, as well as different grades of stainless in the Chinese and Korean markets.
“Though nickel has received a bit of price support in recent days, its fundamentals remain weak with both over-supply and weak stainless demand, which will continue to put pressure on this key additive,” said Lisa Reisman, managing editor of MetalMiner. “A four-point decline represents a significant fall and the first time the index has fallen below 80.”
In addition, PMI manufacturing data moved slightly above the recessionary threshold value of 50, which still suggests some market sluggishness. Without a corresponding increase in demand, we don’t see a ton of price support for stainless steel.
After falling 7.4 percent, the price of Chinese primary nickel finished the month at $15,842 per metric ton. On the LME, the 3-month price of nickel fell 7.3 percent to $13,710 per metric ton. On the LME, the nickel spot price closed the month at $13,680 per metric ton after dropping 6.5 percent.
The price of Chinese ferro-chrome held steady around $1,351 per metric ton last month. Prices for Chinese ferro-moly remained constant this past month, holding at around $23,609 per metric ton. Chinese 304 stainless steel scrap traded sideways last month, staying around $2,670 per metric ton. Hovering around $2,621 per metric ton for the month, Chinese 316 stainless steel scrap remained unchanged. Last month was consistent for Chinese 304 stainless coil, which did not move from $2,670 per metric ton. The price of Chinese 316 stainless coil held steady around $4,233 per metric ton last month. Over the past month, the Allegheny Ludlum 304 stainless surcharge traded sideways, staying around $0.69 per pound. Last month was consistent for the Allegheny Ludlum 316 stainless surcharge, which did not move from $0.98 per pound.
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 over a 30-day period. 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.