According to Meps, nickel prices have retreated somewhat from the record high they reached earlier this month. Such elevated prices are causing increasing concern to stainless producers and their customers. As a result of nickel’s price surge, stainless mills have already announced increased alloy surcharges for August sales. In Europe and North America, surcharges for type 304 flat products have almost doubled since January, and they seem certain to rise again in September. Along with hikes in basis figures, this has propelled transaction values for many nickel-bearing grades to record highs. Therefore it is not surprising that users of austenitic grades are casting around for alternatives and examining whether they could cut costs by switching to other materials. Stainless producers say they have not witnessed much substitution so far. This is partly because the price of many replacement materials has also gone up significantly. Among stainless steel’s rivals, copper prices have risen by almost 60% so far this year and also stand at record high levels. Galvanized steel sheet prices are currently about 40% above those of January, largely because of a 52% increase in the price of zinc. Perhaps the most attractive alternative to stainless is aluminium, where the London Metal Exchange price in late July was a mere 3% up on its January figure. Stainless producers themselves are offering their customers a range of alternatives in an effort to prevent business being lost to non-ferrous or carbon steel materials. Such options include lower-nickel duplex grades and ferritic types. In the meantime, nickel’s fluctuations will continue to create problems for the stainless industry worldwide.
