MEPS North American update

The MEPS North American composite stainless steel selling figure has climbed significantly since the beginning of 2010. Rising raw material costs, coupled with growing demand has helped mills to push through price hikes for all product categories. Transaction values are expected to climb further in June. There has been a slight increase in activity in the US on flat products. Many customers report that their business is picking up and funding for some new projects is anticipated. Domestic manufacturing output is expected to return to something like normal levels during the course of this year. This should have the by-product of increasing stainless scrap availability, which could, in turn, reduce the price of scrap and, possibly, nickel. Most supply chain participants in the US are carrying minimal inventories of long products, to limit their exposure in case transaction values start to fall. Distributors have, therefore, had to increase their purchases recently to meet their customer’s requirements. Observers predict a traditionally slow summer period. Several leading producers have announced basis price increases, effective for deliveries from 1 July.

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