Stainless Surges

摘要

The essential role that nickel plays in the production of stainless steel has meant, historically, that as the nickel price goes, so goes the stainless scrap price. Unfortunately, this close relationship has meant that those in the stainless scrap industry are used to being at the mercy of a volatile primary metal price. When the London Metal Exchange's three-month-average nickel price plunged in mid-2013 to a four-year low, stainless consumers reported inventory-related losses that affected their profitability, while stainless scrap processors said margins were tightening. The extent of the challenges facing the industry became clear in September, when stainless steel scrap processor Keywell (Chicago] filed for Chapter 11 bankruptcy, citing the drop in nickel prices and sales volume. Private equity firm Prophet Equity (Southlake, Texas) acquired the company's assets late last year.