July 20, 2008

Stainless steel sheet prices in US to increase in May

Purchasing.com reported that despite sluggish buying, cold rolled stainless steel sheets in 304 series could rise by 10% this month to USD 4726 per ton up by 18% as compared to December 2007.

The report said that “The current stainless steel market is being described as confused with tight domestic supply and flat imports supporting stronger than expected transaction prices, even though purchasing by end users and service centers is down 14% from year ago tonnage. Economically sensitive end markets remain challenging” for stainless and specialty steel mills.”

It said that “What has not changed since March is that buying continues on an as needed basis. Demand is solid in the aerospace, energy and medical market sectors but down dramatically in the larger industrial, automotive and consumer goods sectors. Yet, market economists anticipate further increases in stainless steel prices, perhaps even back toward the record levels of last summer, even if market supply outweighs demand. That’s because the recent moderation in alloy surcharges that have restrained the price inflation in North American stainless steel products is about to come to an end.”

The report added that “Ferrochrome is rising again and now is 25% higher than at the end of December, while nickel is 10% more expensive. Atop that, stainless steel scrap supply is tight because of reduced industrial activity and expanded exports and prices have increased by at least 5% recently.”