In Europe, stainless steel business activity is at relatively low levels. With alloy surcharges falling in December and set to rise in January, some speculative purchasing may have been expected, this month.
The US economy is strengthening. There is growing stainless steel sales activity and longer delivery lead times, especially for cold rolled coil. But, there has been no positive movement in coil basis values, even as the alloy surcharge has slipped. The strong American dollar has also made the US a more attractive market to Asian producers.
In terms of nickel, values of the metal are forecast to rise, moderately, in 2015. But in the longer term, global supply and demand for nickel are predicted to be in balance in 2015, with increasing year-on-year deficits thereafter, as output from new nickel production facilities fails to match the growth in demand.