2013 is shaping up to be a somewhat atypical year for the US stainless steel market with buyers nervous early in the month, but making up the difference by the time the month ends. This phenomenon, which occurred both in January and February, is not all that surprising given when surcharges are published but it also reflects uncertainty in the marketplace, not the least of which is the effect on the US economy should the sequester cuts, set for March 1, be enacted. Therefore, consumers have waited until their cupboards are bare before buying metal. Even the last few months of raw material surcharge increases have not swayed them to off of the sidelines and early indications that extras could fall in April, based on large nickel corrections in the past week, is definitely not making them change their minds. Nevertheless, with underlying end-use demand continuing to tick up, at least outside of military applications, MBR believes that both demand and prices will improve in the second quarter once there is more clarity about the future.
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