STEEL NEWS

MEPS: stainless flat steel prices hit highs

According to British analytical agency MEPS International Ltd., world stainless steel prices continued to rise in early March, especially for 300 series coils and sheets. The upward trend is supported by healthy demand, severe material shortages and extended delivery times for replacement tonnage. This, coupled with high raw material prices, has pushed the prices of these products to multi-year highs in Asia, Europe and the United States.

Sales in Asia rose in early March. However, due to a significant drop in nickel prices during the first week, several steel companies adjusted their prices downward in the middle of the month. However, Asia's average MEPS transaction value for March is at its highest since mid-2014. Many export offers to European buyers have dropped by about $ 100 per tonne in recent weeks. However, some Asian manufacturers are reported to prefer supplying their own markets rather than accepting orders from overseas buyers.

In Europe, a further rise in stainless flat steel prices was recorded this month. The average European MEPS deal value for 304 cold rolled coil in March is € 2,671 per tonne. European stainless steel producers have not reached such a price level since June 2011. Supply across the region remains limited. Delivery times have been extended and a number of factories are fully booked for the summer months.

The average North American MEPS transaction value for Type 304 cold rolled coil has increased $ 70 per tonne this month. Demand still exceeds supply. Consequently, distributors and traders cannot accumulate stocks and stocks in the region remain low. In addition, the shortage of truck drivers has led to a significant increase in transport costs. Material supplies from overseas suppliers continue to be subject to Section 232 tariffs, exacerbating the apparent shortage of stainless steel.

At the moment, the fundamentals of the nickel market have allowed the price of this metal to be reduced to a more stable level. Nevertheless, the mid-term outlook for nickel remains positive, and an imminent collapse in prices is not expected. As such, the value of stainless steel coil and sheet deals is expected to remain high in all regions in the near future. In addition, limited availability and relatively strong demand in the stainless steel market are forecast to continue.