Stainless Steel Me

Two major stainless steel flat-rolled mills are planning what amounts to a 3% increase in August transaction prices for cold-rolled sheet. Price increases have been announced by Allegheny Ludlum unit of Allegheny Technologies and North American Stainless. The other major U.S. producer, AK Steel, is seeking to increase stainless surcharges in September.

Allegheny Ludlum says its increase actually is 6% when buyers factor in the price hikes and functional discount cuts also announced for hot-rolled sheet and strip, tubular quality sheet and strip, continuous mill plate products and its proprietary emissions control alloys.

Stainless cold-rolled Type 304 cost an average $1.09/lb in July, according to Purchasing‘s buyers’ survey, when base prices and surcharges are added. The price increase would boost the sales price to $1.13/lb. In July 2008, stainless cold-rolled sheet averaged $2.14/lb.

Service center sources suggest buyers will pay the new price in August but some purchasing groups disagree, noting that buying activity is in a summertime hiatus and new bookings at higher prices probably won’t happen until September.

The price increase comes at a time when stainless steel use has dropped by 36% through April this year, based on calculations from data supplied by the Specialty Steel Industry of North America. That may explain why producers have reported erratic output so far this year. According to statistics gathered by the American Iron and Steel Institute, stainless production has ranged from a high of 166,777 tons in February to a low of 92,948 tons in April but has only rebounded to 126,435 tons in June.

To keep up to date with latest month by month stainless steel prices for the US market see US Prices

Source