Stainless steel highlights

摘要

Despite continued consumer resistance, transaction prices for CR304 stainless steel in Europe have risen this month. The strong performance of nickel prices towards the end of last year helped push the February surcharge for CR304 material to 335 euros/tonne - 35 euros/tonne higher than the year-end level. Accordingly, even with marginally lower base price from mills on mainland Europe, transaction prices for CR304 in the benchmark German market have now jumped 10 euros/tonne to 1,770 euros/tonne. This scenario also seems likely to continue into March, when the buoyant start to the new year in nickel markets should have been fully factored into premium calculations, and MBR estimates the surcharge for 304 material will be in the region of 350 euros/tonne. With alloy surcharges now increasing steadily (and forecast to do so for the foreseeable future as the fundamentals surrounding nickel, chrome and molybdenum markets appear reasonably strong), it is inevitable there has been some modest restocking by service centres this month. Distributors keen to avoid paying higher transaction prices in the future have entered the market, looking to rebuild stocks drawn down in the run up to the winter holiday period. However, it remains MBR's view that behind speculative inventory adjustments, stainless steel demand is still essentially flat within Europe. Chinese demand for European material, which in the past few months has provided some support to export prices, has also been heavily affected by their Lunar New Year holidays.