The high and volatile prices of the alloy metals that go into stainless steel are causing massive problems for both producers and consumers. Nickel is the chief culprit, its price during last year ranged from a peak of almost USD 18,000per tonne to a low of around USD 10,500per tonne. The high cost of nickel-bearing stainless is prompting users to consider alternatives and, in some cases, to switch to other cheaper materials. Anecdotal evidence of a significant change in stainless consumption patterns has now been confirmed by statistics from the Japan Stainless Steel Association. The reduction in Japanese sales of 300 series stainless last year represents a loss of about 3,900 tonnes of nickel consumption. China has also been using much larger volumes of low-nickel 200 series products to substitute more expensive 300 grades. European stainless mills have also reported end-users switching to lower-cost nickel-free or low-nickel specifications.
