Stainless prices have increased by a further 11% since the turn of the year; up 44% on the lows of 12 months ago.
This increase has been mainly raw material supply driven, as investor funds have focused on nickel ore supply from Indonesia and Philippines. Nickel stocks have remained high, while supplies have been in balance with demand.
Ferro-chrome prices jumped at the end of year, as demand increased, whilst supplies became tight due to capacity reductions. Spot prices have continued to remain firm. The end year ferro-chrome benchmark price hike added 8.5% to total stainless price.
More recently, stronger S/S demand in Europe, has increased lead-times for new production CR S/S to 10-12 weeks. Demand in China is firm also. In the US the economy continues a strong recovery, ahead of any decision on tax and infrastructure spending.
The prospects for continuing growth in S/S demand look good, unless there is an impact on economic growth from geo-political events.
