This morning in metals news, the U.S. Department of Commerce issues a final affirmative determination in its anti-dumping and countervailing subsidy investigation of carbon and alloy steel wire rod from five countries, LME copper pushes away from a three-month low and the E.U. is hopeful it can win at least temporary exemptions from the U.S. […]
Category: Metal Prices
This Morning in Metals: Tariffs Exemption Talks Continue
This morning in metals news, the U.S. is in talks with several nations regarding possible exemptions from its steel and aluminum tariffs, Shanghai copper hits a six-month low Wednesday and the U.S. drops a bargaining point in the ongoing North American Free Trade Agreement (NAFTA) renegotiation talks. Need buying strategies for steel? Try two free […]
Tin Prospects Looking Positive
Tin plays to a different tune from most LME metals. Need buying strategies for steel? Try two free months of MetalMiner’s Outlook It generally doesn’t attract the same speculative crowd from which copper, aluminum and zinc suffer. Its lack of any applications in jewelry keeps it firmly away from the precious metals camp. It’s termed […]
It’s Back: Updated Section 232 Impact Report Includes New Aluminum, Steel Sections
A little over two weeks ago, the MetalMiner team released its Section 232 Investigation Impact Report in response to President Trump’s initial announcement regarding the intention to impose tariffs of 25% and 10% on steel and aluminum, respectively. Of course, time marches on and so, too, does the news. Since then, the announcement became […]
Week in Review: Section 232, Cobalt Price Volatility and Indian Solar
Before we head into the weekend, let’s take a look back at the week that was and some of the headlines here on MetalMiner: Need buying strategies for steel? Try two free months of MetalMiner’s Outlook In non-Section 232 news from the Department of Commerce, the government body issued a preliminary affirmative determination in its […]
Has the Aluminum Bull Market Come to a Skidding Halt?
Aluminum buyers are understandably nervous about the future price direction following the near 9% fall in prices from a high in early January. Buying Aluminum in 2018? Download MetalMiner’s free annual price outlook Aluminum on the Shanghai Futures Exchange closed at the lowest level this week in 14 months, particularly unsettling as the industry had […]
The March MMI Report: Subindexes Lag as U.S. Tariffs Reactions Roll In
It’s that time — our latest Monthly Metals Index (MMI) report is in, covering the second month of 2018. Momentum from the start of the year slowed considerably in this round of readings.Need buying strategies for steel? Try two free months of MetalMiner’s Outlook Four MMIs held at the same reading as the previous month (Automotive, […]
Have Zinc Prices Already Peaked?
This month, zinc prices started to trade lower, returning to the $3,200 level. This activity represents the first short-term price pullback we’ve seen in zinc prices since June 2017, when prices started their latest rally. Need buying strategies for steel? Try two free months of MetalMiner’s Outlook But going back even further, the zinc price […]
Buyer Beware When it Comes to Cobalt
Cobalt may be a minor constituent of lithium ion batteries, but it is a crucial one. Need buying strategies for steel? Try two free months of MetalMiner’s Outlook Lithium has been the metal in the news this year. Bolstered by rising demand for hybrid and electric cars, however, the supply market has been struggling to […]
Stainless MMI: LME Nickel Prices Drop While Stainless Surcharges Rise
The Stainless Steel MMI (Monthly Metals Index) traded flat in March after a big jump in February. The current reading is 75 points.
Need buying strategies for steel? Try two free months of MetalMiner’s Outlook
The index remained flat as LME nickel prices decreased slightly, while other elements of the stainless steel basket increased. Stainless steel surcharges jumped again this month, largely following the previous month’s LME nickel price movements.
LME Nickel
Nickel momentum appears to have slowed since the beginning of March. Prices retraced slightly. However, nickel prices remain in a strong, long-term uptrend.
[caption id="attachment_90804" align="aligncenter" width="580"]
Source: MetalMiner analysis of FastMarkets[/caption]
Like copper prices, nickel prices remain above the blue dotted line above. In December, nickel prices rallied and started to trade with a sharper slope, following the purple dotted line.
However, these movements are often not sustainable in the long-term trend, and commonly correct. Therefore, nickel prices retraced to their long-term trendline, while trading volume remains supportive of the uptrend.
Domestic Stainless Steel Market
Following the recovery in stainless steel momentum, domestic stainless steel surcharges increased further this month.
The 316/316L-coil NAS surcharge breached its previous $0.8/pound ceiling. Stainless steel surcharges increased again rapidly. Therefore, buying organizations will want to look at surcharges to identify opportunities to reduce price risk either via forward buys or hedging.
[caption id="attachment_90805" align="aligncenter" width="580"]
Source: MetalMiner data from MetalMiner IndX(™)[/caption]
Tariffs Do Not End in the U.S.
The European Commision prolonged the already existing anti-dumping measures on Chinese imports of stainless steel seamless pipes and tubes for another five years. The duties imposed initially in 2011 ranged from 48.3% to 71.9%. These duties gave European stainless steel producers — like France, Spain and Sweden — some breathing room.
The review of these measures started again in December 2016 and showed the removal of duties on Chinese products would harm European producers.
Therefore, the European Commission agreed to maintain the current duties on pipes and tubes used in the chemical and petrochemical industries for another five years.
Although the Europeans have not enacted broad tariffs like the U.S. has done via Section 232 of the Trade Expansion Act of 1962, the issue of global overcapacity remains paramount as the E.U. continues to implement heavy duties on stainless steel products to limit imports.
What This Means for Industrial Buyers
Stainless steel momentum appears stronger this month, recovering from its previous weakness.
As both steel and nickel remain in a bull market, buying organizations may want to follow the market closely for opportunities to buy on the dips.
To understand how to adapt buying strategies to your specific needs on a monthly basis, take a free trial of our Monthly Outlook now.
Buying organizations who have concerns about the Section 232 impact on the steel industry may want to read our comprehensive Section 232 Report, which includes new data.
MetalMiner’s Annual Outlook provides 2018 buying strategies for carbon steel
Actual Stainless Steel Prices and Trends
