November 21, 2008

Asian 400 series SS prices experiencing upward trend

Asian major stainless steel makers have raised prices of 400 series stainless steel to cover the higher costs of chrome. Ferro chrome prices have been rising since the middle of 2007 due to a combination of strong demands for low nickel stainless steel and supply tightness.

Global major stainless steel producers have produced more ferritic stainless than austenitic stainless due to higher prices of nickel since the middle of last year. For 430 stainless steel ferrochrome price is a feature than nickel in the surcharge calculations. Low carbon ferrochrome prices are currently quoted at all time highs of USD 4.10 per short tonne, while high carbon ferrochrome increased to USD 2.55 per short tonne. Moreover, price of low carbon could reach above USD 5 per short tonne.

Moreover, downstream home appliance producers are using more 400 series stainless to reduce production costs. Ferritic stainless (400 series) contains a chrome content ranging from 18% to 25%.

South African has around 40% of the world’s ferrochrome production, but those ferrochrome producers were forced to cut production due to the electricity shortage. China’s miners also reduced their production output due to snowstorms.

Market analysts forecast that the strength of the sentiment will continue in next few months, as stainless steel market will see a real improvement from the second quarter.

(Sourced from YIEH.com)