MEPS has accurately predicted that North American stainless steel transaction values have moved up considerably in early June. These rises were due to hikes in alloy surcharges of USD 380 per tonne and USD 475 for grades 304 and 316 respectively. Sales volumes plummeted as buyers were aware that stainless steel prices would be lower in July due to a drop in raw material costs. Sellers were forced to make an early move to implement July surcharges in order to counteract the downturn in shipments. Mill delivery lead times remain short. Many producers restricted output in a bid to relieve oversupply pressures. Meps has downgraded its forecasts slightly due to recent decreases in nickel, iron and molybdenum costs. Lower alloy surcharges and, therefore, transaction values for all products are predicted for July. Weakening market conditions and falling raw material expenditure, are expected to result in selling figures dropping during the second half of 2010. New rolling capacity at the ThyssenKrupp USA plant could add to oversupply and put further downward pressure on prices. However, many producers are planning to restrict output in an attempt to counter the impact of the changing situation. End-user consumption is expected to strengthen early in 2011 as the economic climate improves. Distributors will, almost certainly, look to refill depleted inventories as sales volumes grow. This, coupled with anticipated hikes in input costs, should push stainless steel selling figures upwards during the first and second quarters of 2011.