Since the beginning of this year, nickel values have been on the rise, which in turn have resulted in a substantial increase in stainless steel prices.
Nickel prices rose the highest over last month (May 2014) and industry insiders have predicted that transaction values for austenitic grades will climb even more this June.
Nickel prices rose the highest over last month (May 2014) and industry insiders have predicted that transaction values for austenitic grades will climb even more this June.
On May 13, the LME nickel price peaked at USD $21,000, which was more than 50 percent compared with its low point, below USD $14,000 per ton in early January.
As a result, alloy surcharges for grade 304 flat products, in Europe and the United States will be about 25 percent higher in June than they were in April and 38 percent more than the January figures. The main reason behind the ever-increasing nickel prices is the Indonesian government’s ban on exports of unprocessed ores, which came into effect January 2014. The upward pressure on nickel values became strong as market players assessed the medium-term repercussions of the ban.
As a result, alloy surcharges for grade 304 flat products, in Europe and the United States will be about 25 percent higher in June than they were in April and 38 percent more than the January figures. The main reason behind the ever-increasing nickel prices is the Indonesian government’s ban on exports of unprocessed ores, which came into effect January 2014. The upward pressure on nickel values became strong as market players assessed the medium-term repercussions of the ban.
As many Indonesians had hoped, there are several nickel processing plants that are planned or currently under construction in the country.
In the short term, Chinese nickel pig iron production is predicted to fall by around 100,000 tons this year. The global surplus in nickel (production versus consumption) will be cut in 2014 and may even move into deficit. MEPS believes that the medium-term prospects for nickel prices remain positive and the new floor value is likely to be around USD $18,000 per ton mark.
In the short term, Chinese nickel pig iron production is predicted to fall by around 100,000 tons this year. The global surplus in nickel (production versus consumption) will be cut in 2014 and may even move into deficit. MEPS believes that the medium-term prospects for nickel prices remain positive and the new floor value is likely to be around USD $18,000 per ton mark.