Stainless Steel Me

Current forecasts for stainless steel surcharges to be announced next week for August deliveries by European mills are expected to rise. The surcharges are calculated using several factors that include elements such as Nickel, Chrome and Molybdenum . They also have to incorporate an allowance for currency as many of these elements are traded on the London metal exchange (LME) in USD. All the producing mills calculate their figures Independently due to scrutiny from EU commissioners but as they are using basically the same elements they are all very similar. Recently the commodities especially Nickel have been strong but also FerroChrome has increase which effects ferritic prices more especially 430. The current forecasts for August delivery are as follows:-

304 (1.4301) – 850 Euro (735 GBP)

316 (1.4404) – 1195 Euro (1382 GBP)

430 (1.4016) – 179 Euro (155 GBP)

This will further enhance the recent price increases that have been applied due to short supply and with many mills now closing for at least 4 weeks there is no sign of any price weakening.