MEPS PREDICTS MODEST
UPTURN IN GLOBAL STAINLESS STEEL PRICES
The MEPS world average
stainless steel price is expected to extend its slow recovery due to
rising raw material costs and local supply tightness in several
regions. The world average price for 304 cold rolled coil increased,
marginally, this month, to a figure just 3.6 per cent below the
number recorded one year ago.
Raw material costs are expected to grow, moderately, from their
current levels. The LME average nickel price is forecast to be
around 15 per cent higher in the coming year than in the previous
twelve month period.
Transaction values in Asia are expected to be quite stable, in the
next two quarters, before rising gently, boosted by inventory
building, to a peak in mid-2017. Selling figures are likely to
soften, in the summer months.
In Europe, increases in basis prices are likely to be restricted,
over the next twelve months, by surplus production capacity and
competition from imports. Predicted increases in mill input
expenditure should lead to rising transaction values, in early 2017.
A seasonal, downward price trend is anticipated as the summer
holiday period approaches.
In North America, US government tariffs on Asian imports will
continue to tighten supply of cold rolled coil and put upward
pressure on basis figures. Anticipated rises in raw material costs
should result in further increases in transaction values, during the
first half of next year. The effective price for type 304 cold
rolled coil is forecast to be 6 per cent higher, in August 2017,
than this month’s figure.
Source: MEPS -
Review - August Issue
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