Stainless Steel Me

Finnish stainless steel manufacturer and market leader in the UK has announced increases for delivery of new material for September. The increases of 5% for Austenitic grades (304 / 321) and 10% for Molybdenum grades (316) announced in the UK where widely anticipated. Although unlike the recent price increases by Yusco which are to reflect higher commodity costs including Nickel they are completely separate. In the UK an Alloy adjustment factor (AAF) is added to base prices often referred to as a surcharge to reflect commodity fluctuations. This increase is on the base price and is over and above any surcharge increase.

This move shows the recent change in confidence from the mill with a much more bullish approach. With reductions in capacity starting to bite especially with the summer shutdown. There is also recent evidence of slight growth in demand prompting signs of an upturn.

With Nickel prices closing Friday over $17,700 on the LME and recent increases in scrap prices the mills seem to be leading the market price upwards.