Alloy surcharges drive stainless markets

The global steel scene remains quite buoyant despite the substantial hikes in raw material costs to the producers, according to MEPS – Stainless Steel Review. Alloy surcharges for the austenitic grades are at their highest levels recorded in the last seven and a half years. Currently, in the US, the popular grade 304 hot rolled coil carries an alloy surcharge of USD 1336 per tonne. This figure is higher than the agreed basis price and represents approximately 52 percent of the selling value of the product. The situation is marginally less dramatic in Germany. The type 304 alloy surcharge in September is EUR 910 per tonne. In the case of the molybdenum-bearing grade 316, the impact of alloy surcharges becomes even more startling. In both the EU and US, alloy surcharges equate to around 55% of the cost of buying hot rolled coil. The balance between supply and demand still remains a determining factor for the price of austenitic stainless steel products. However, this is overshadowed by the cost implications of the alloying elements which go into manufacturing them.

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