Delivery lead times are extending in the US and domestic mills have virtually no inventories. Customers are prepared to pay more to obtain supplies and, therefore, producers have cut discounts on basis prices from March 1. In addition, austenitic surcharges have increased by 11.5 percent for type 304 and 12.1 percent for grade 316. Demand is firm. Service centres are busy and their stocks are dwindling. Further price rises are highly probable during the second quarter. From the beginning of April, Japanese steelmakers will introduce an alloy surcharge for heavy plate business. The concept is new to the market but the mills seem confident the initiative will be accepted. Further price hikes have been secured during March negotiations with distributors. Sales to local and export markets are good.
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