If you thought allegations of emissions rigging were a thing of the past, think again. Need buying strategies for steel? Try two free months of MetalMiner’s Outlook It appears what’s good for Volkswagen is probably good for BMW, too. According to an article in The Telegraph, BMW’s Munich office has been raided by German authorities […]
Tag: L1
India’s Nalco and Canada’s Almex Get Closer to Joint Venture
Late last year, India’s National Aluminium Company (Nalco) had talked of striking up a joint venture (JV) in India with two companies – Canadian firm Almex and Rusal of Russia. Need buying strategies for steel? Try two free months of MetalMiner’s Outlook This week, according to a news report, Nalco has firmed up plans to […]
Department of Commerce Releases Section 232 Exclusion Process Details
The Department of Commerce released both the process and requirements for the submission of exclusions for the steel and aluminum Section 232 proclamations made public on March 8, 2018. Need buying strategies for steel? Try two free months of MetalMiner’s Outlook As published in the Federal Register, the Secretary of Commerce has the authority to […]
Tariffs Could Just be First Salvo in Readjustment of U.S. Trade Relationships
There were grand words from German Chancellor Angela Merkel and Chinese President Xi Jinping, the leaders of two of the world’s biggest trading economies, on a call Saturday ahead of a Group of 20 (G20) meeting of finance ministers and central bank governors in Buenos Aires, reported the Financial Times. Need buying strategies for steel? Try two […]
Steel Capacity Utilization Rate Hits 74.8% Through March 10
According to weekly data reported by the American Iron and Steel Institute (AISI), domestic raw steel production for the week ending March 10 hit 1,813,000 net tons. Need buying strategies for steel? Try two free months of MetalMiner’s Outlook The production for that week produced a capacity utilization rate of 77.8%. The numbers for that […]
High China Iron Ore Port Stocks Not the Whole Story
Not surprisingly, any discussion of iron ore prices in top consumer China inevitably involves some reference to import stock inventory. Need buying strategies for steel? Try two free months of MetalMiner’s Outlook So when Reuters reports that the Dalian commodity exchange May iron ore contract price touched a low of 475.50 yuan per ton this […]
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 […]
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.
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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
