EXPLOSIVE NICKEL PRICE WILL DRIVE STAINLESS STEEL PRICES UP
EXPLOSIVE NICKEL PRICE WILL DRIVE STAINLESS STEEL PRICES UP
20th of July ,2021
Now at a 5 year high of 18.000$/ton Nickel has increased 50 % in just 2 months. If the Nickel price remains around this level, it will inevitably lead to a further increase in stainless steel prices.
Triggered by a possible Indonesian export ban on Nickel ore and growing expectations the production of batteries for electrical vehicles will create higher future demand for Nickel, the price on LME has surged almost 50 % in just 2 months. Settling just below 18.000 $/t on Friday 30th August Nickel reached a price level not seen since 2014.
The Nickel price is the main driver of the alloy surcharges applied by the European stainless steel industry, and the Nickel price surge that had already taken place has so far resulted in a 15 % increase in the 4301 surcharges equivalent to around 10 % increase at the net effective price level.
If Nickel stays around the 18.000 level, or increase even further, Dacapo expects a substantial increase in the October and November alloy surcharges and effective price levels.
Triggered by a possible Indonesian export ban on Nickel ore and growing expectations the production of batteries for electrical vehicles will create higher future demand for Nickel, the price on LME has surged almost 50 % in just 2 months. Settling just below 18.000 $/t on Friday 30th August Nickel reached a price level not seen since 2014.
The Nickel price is the main driver of the alloy surcharges applied by the European stainless steel industry, and the Nickel price surge that had already taken place has so far resulted in a 15 % increase in the 4301 surcharges equivalent to around 10 % increase at the net effective price level.
If Nickel stays around the 18.000 level, or increase even further, Dacapo expects a substantial increase in the October and November alloy surcharges and effective price levels.
Dacapo invite all customers to reach out to their Dacapo sales teams to discuss how this price development can best be managed.
