Prices for stainless steels are falling

According to a report by MEPS International, stainless steel prices have fallen and may continue to fall in July and August. In addition, the trend is likely to persist over time in Europe and North America and may hit the bottom of the current cycle.

In the United States, the decline in commodity prices has caused a rapid drop in stainless steel prices. Alloying element prices dropped significantly in July. Nickel prices have stabilized though. MEPS expects 304 cold rolled coil prices to fall 5 percent below their record high in April this year. This, however, is almost 20 percent higher than last year.

In Europe, prices for alloying elements continue to fall. Underlying prices are falling and the market is expecting further contraction. In Germany, prices for 304 laps in June are 9 percent lower than in April, but, like in the US, prices are 20 percent higher than last year.

In China, changes in commodity prices affect the price of stainless steel faster than in other countries. Ferrochromium and nickel prices have risen in recent weeks, and stainless steel product prices along with them. In the case of 304 cold rolled coils, prices in June are 23 percent lower than the peak reached in December last year, but 2 percent higher than in June 2016.