European stainless steel spending hits four-month highs in October

According to the latest mill announcements, monthly premiums for flat products made from austenitic stainless steels will reach a four-month high in Europe in October, driven mainly by the recent rise in nickel prices.

The rally in the nickel price is responsible for much of this gain in recent weeks, so the rebound in surcharges could be nipped in the bud.

The markup rose in September for the first time in five months and is set to rise next month. Surcharges for 304 (4301) steel flat products announced by Outokumpu, Aperam and Acerinox for October averaged € 1,230 /t ($ 1,445 /t), up from € 1,087 /t in September and the highest since June ...

Nickel prices on the London Metal Exchange reached 15-month highs above $ 12,300 /t earlier this month, but the market has since lost about 14% of its value and is trading below $ 11,000 /t. However, ferrochromium prices, which are on the rise again, will be of great support.

The steady decline in markups from five-year highs in April weighed on stainless steel demand and benchmark prices throughout the summer, but is recovering after the end of the vacation period, company sources said.

“A strong euro at 1.19-1.20 per US dollar is a disadvantage for us, already in the first half of the year we are seeing an increase in imports compared to last year, especially in hot rolled products,” the producers specify.