Stainless Steel surcharges continue to climb
European stainless steel surcharges increased yet again for May delivery driven by strong Nickel prices. The figures announced by Outokumpu the Finish based stainless steel supplier for European deliveries of stainless steel in May 2010. The increases where expected with Nickel hitting a 24 month high over $27,000 per tonne before slipping back slightly. LME stocks of Nickel where initially forecast to have an oversupply this year but those forecasts have been quickly reversed and now expect a shortfall. With rising iron and chrome prices ferritic stainless steels often used in catering environments are also starting to rise With increased demand worldwide and the erosion of surplus stocks now look likely to lead to high prices for sometime, but how long is the key.
A snapshot of the surcharges announced today are listed below:-
1.4301 (304) 1752 EUR /1552 GBP
1.4404 (316) 2790 EUR / 2472 GBP
1.4016 (430) 400 EUR / 354 GBP
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That will be a big problem if the prize in the market will continue to increase it will affect the production of stainless steel.The effect of surcharges will be another problem because how it will add charges and possible pass to the customer.