STAINLESS STEEL PRICES FALL IN JANUARY BUT VALUES SHOULD PICK UP SOON

January transaction prices for austenitic stainless grades fell in most parts of the world. Exceptions were the United States and Spain. Mills in these countries currently use a reference period for surcharges based on alloy costs recorded two months prior to delivery of the steel. The remaining nations have either no alloy surcharge or the term for calculation is based on the price of inputs in the month before delivery of the stainless product.

Surcharges are not universally applied but it is said that stainless producers in China, Taiwan and South Korea are seriously considering introducing them in the near future. A limited system is in force in the Japanese market. Acerinox, the Spanish producer, which maintains the previous EU method for alloy surcharge calculations, is said to be prepared to move in line with the other major regional flat products manufacturers.

If Acerinox do introduce a system for calculating alloy surcharges similar to that undertaken by its competitors, it will simplify the current complex situation across the EU. This month, Spanish and US alloy surcharges for the 300 series are just below the December outturn. However, in the remainder of Europe, figures decreased significantly. In February, US and Spanish austenitic surcharges will be lower but in the rest of Europe a higher value will be recorded.

Source: MEPS - Stainless Steel Review - click here for a free sample copy.

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