Over the last 12 months the world average stainless steel prices have been mostly positive. Since a seasonal dip in August 2013, transaction values have predominately been on an upward curve before softening in the last two months.
The average price for grade 304 cold-rolled coil in August was around 23 percent higher than the same period in 2013. Basis values, where applicable, have recorded relatively small fluctuations and remain only marginally above the producers’ break even figures. With nickel and molybdenum values increasing substantially, alloy surcharges for grade 316 have climbed by more than 35 percent. Although raw material costs are not expected to grow much above current levels, the average will be significantly higher than during the past twelve months.
North American basis values are predicted to remain quite stable, after a proposed hike in October. Transaction figures will track the changes in alloy surcharges. This is likely to result in seasonal peak prices being reached in October 2014 and May, next year. Global crude stainless steel production is predicted to achieve a new record annual total of more than 40 million tons, in 2014.