Stainless Steel Producers Raise Prices Significantly

Stainless steel prices are rising rapidly due to improved demand and higher raw material costs, which are at least half as much as last year. This leads to higher prices for manufacturers of finished products.

According to analysts at MEPS International, moderate demand is pushing prices up on the supply side. However, the increase in prices for stainless steel products is primarily due to the rise in prices for nickel. Nickel fell to a record low of $ 7,700 per tonne in February last year, and rose to $ 11,000 per tonne at the end of the year. According to MEPS analysts, this growth is partly based on speculative buying, but also a result of the situation with the growth of production in China, which has become the world's largest producer of stainless steel.

In 2014, Indonesia, one of the largest nickel producers in the world, imposed export restrictions on unprocessed nickel ore in an attempt to give a boost to local steelmakers. Slowly, but Indonesia is gradually easing restrictions, but still most of its production remains in the local market.

After limiting the export of nickel to Indonesia, the Philippines became the main source of metal supplies to China. Recently, some mines in the country have been closed for environmental reasons and operational safety. In addition, the rainy season is now beginning there, which annually affects the seasonal decline in production volumes, which contributes to the growth of nickel prices.

It's not just nickel that is on the rise. During the first three months, the price of chrome is expected to rise 79 percent year on year, climbing to $ 1.65 a pound. Scrap prices in the EU and US markets are also 55 to 60 percent higher than a year ago, which also drives up stainless steel prices.