September 2013 Monthly Metal Price Movement Stainless Having traded in the range $13,500-14,000 throughout July, nickel made some gains throughout August. The price peaked at $14,730 mid-month and will result in 304 surcharge increasing by £13/tonne in September. With prices having fallen for five successive months, this change is required by producers and distributors alike. All the major producers have been incurring significant losses. Encouraged by the stabilisation of prices and an increase in order in-take, the mills have also announced a price increase of £50/tonne for October deliveries. This increase is required by all mills to reduce their loss making. If nickel holds stable over coming weeks they should be successful in achieving the increases. Scrap prices have also risen slightly over recent weeks. Any significant weakening of nickel prices would prevent these price increases holding. Faced with falling prices over recent months, the majority of distributors have held back on ordering stock. This is resulting in many stockists having gaps in their stock range and some shortages of material. Items that have been particularly difficult to source over recent weeks include hot rolled plate, bright annealed sheet and 430 box section. Mild Steel Following a period of stable prices and solid demand, mild steel producers are currently looking to increase selling values. Sheet and coil producers have announced increases of £15-20 per tonne and section mills are looking for an extra £25 per tonne. Whilst it is unusual for prices to rise over summer months, there are likely to be some gains in the short term as distributors are working off extremely poor margins at present. Industrial activity has increased over recent months, and activity levels in Germany have just reached a 16 month high. Scrap prices have risen slightly and it is likely there will be some price gains over coming weeks. Aluminium Aluminium prices are plotting a similar path to nickel prices and have risen by 4-5% since late August. This increase partially reflects speculators investing back into commodities. Although producers do need the prices to rise, any potential increases will be undermined if commodity prices fall back.
Posted on: Fri, 30 Aug 2013 09:34:14 +0000
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