USA--Changes to alloy surcharge system in effect from October

摘要

After four consecutive months of declining austenitic surcharges due to falling nickel prices, September alloy surcharge levels for 304 flat products will rise 5% month-on-month to 1.1423 US dollars/lb. Assuming base prices remain unchanged, which is currently looking optimistic as end-users are pushing mills to offset the surcharge hikes with base-price reductions, transaction prices for CR 304 2mm/2B sheet will increase to 3,951 US dollars/t (1.79 US dollars/lb) in September as a result, compared to a probable floor of 3,84 US dollars2/t (1.74 US dollars/lb) in August. As nickel prices continue to recover, market participants expect alloy surcharges will continue to increase into the fourth quarter, though it is unclear at this stage whether apparent demand will recover in parallel.