Both Outokumpu and Allegheny Technologies, Inc. (Allegheny Ludlum) have reduced their stainless steel surcharges this week as nickel prices have tumbled on news of record surpluses of the alloying metal in London Metal Exchange warehouses.
Raw nickel ore exports from the Philippines to China, which have largely replaced Indonesian ore exports since that nation banned them in January, have begun to tail of as the island nation deals with monsoon season, but, for now, it looks like more than enough ore has been stockpiled to fill demand.
Following a 14.8% decline to $1.06 per pound, the Allegheny Ludlum 316 stainless surcharge finished as the week’s biggest mover on the weekly Stainless MMI®. The Allegheny Ludlum 304 stainless surcharge fell 11.6% over the past week, settling at $0.78 per pound. Prices for Korean 304 stainless coil remained constant, closing the week at KRW 4.2 million ($3,881) per metric ton. At KRW 4.2 million ($3,881) per metric ton, the week finished with no movement for Korean 304 stainless coil.
Chinese stainless steel prices were flat for the week. Following a steady week, prices for Chinese ferro-chrome closed flat at CNY 8,300 ($1,351) per metric ton. Closing at CNY 145,000 ($23,609) per metric ton, Chinese ferro-moly remained unchanged for the week.
At CNY 129,050 ($21,012) per metric ton, the price of Chinese primary nickel remained essentially flat. Chinese 304 stainless steel scrap traded sideways last week, hovering around CNY 16,400 ($2,670) per metric ton. Following a steady week, prices for Chinese 316 stainless steel scrap closed flat at CNY 16,100 ($2,621) per metric ton. Chinese 304 stainless coil prices held steady from the previous week at CNY 16,400 ($2,670) per metric ton. At CNY 26,000 ($4,233) per metric ton, the week finished with no movement for Chinese 316 stainless coil.
The cash price of primary Indian nickel fell 2.6% for the week to settle at INR 940.30 ($15.34) per kilogram. Since last week, the price of the spot price of nickel fell to $14,925 per metric ton on the LME after moving 2.5%. The 3-month price of nickel saw a 2.4% drop this week on the LME, closing at $15,000 per metric ton.
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.