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Rapidly rising raw material prices and shortages set the trend in 2021

March 05, 2021

Stainless steel market on an upward trend


The market, especially for steel and stainless steel, is currently continuing its upward trend. Supply problems are being reported from the European, North American, and in some cases also South and Central American steel markets.


Steel prices have increased significantly


Prices for steel and stainless steel have increased significantly. Some are even talking of a doubling. Delivery times for European steel producers are already six months or more. – so at least in August.Market safeguard measures pose problems for the processing industry

What is currently bringing the review of the Safeguard measures by the EU Commission and the political events surrounding it into focus in the steel world. There are now strong calls from the processing industry for an end to Safeguard.


United States with all-time highs for steel


Steel prices in the United States are also reaching new all-time highs and availability is more than limited. The economy in the United States has rebounded and market sources told us that things are currently going crazy there and there is hardly any material to be had.

South America also feels the rising prices,In South America, the consuming industry complains of the same suffering. Severe shortages. New material is not yet in sight. And prices are rising sharply. In between, one hears voices from time to time that want to talk down the problem. But at the moment, domestic steel producers are completely overwhelmed and cannot keep up with demand.


What about stainless steel imports from Asia?


“Imports from Asia would currently be an alternative for many companies. But here, too, it is currently a question of readiness to make decisions and speed. And the right knowledge about where to get material and how to import it properly.


The supply chain has not yet returned to normal


The supply chain to and from Asia has not yet fully recovered. There are still not enough containers available where they are needed. The shortage of ships and containers is also reflected in the price. Ocean freight rates have increased eightfold in some cases (

European mills significantly increase alloy surcharges


Alloy surcharges are up significantly again for March 2021. Looking at Outokumpu’s alloy surcharges for 304 from November 2020 versus March 2021, they have increased by almost 28% (about 54 US cents). From February 2021 to March 2021 by 14 US cents alone.

Nickel temporarily at a record level above $20,000/mt


On February 22, 2021, nickel briefly jumped above $20,000 per ton on the London Metal Exchange, Shortly thereafter, it consolidated again and has since held steady between $18.000 and $19,000. Overall, the commodity market seems to be reorganizing. However, we currently see a trend further upwards.


Ferro Chrome: Concerns about availability in China


The major Chinese stainless steel producers have very recently increased March prices for high-carbon ferro-chrome tender, After Ulanqab, a major ferroalloy production hub in Mongolia, China, shut down all small furnaces in January 2021, concerns and uncertainties about the supply of ferrochrome in China had already arisen. And had caused Chrome prices to rise.


Scrap: Further price increase or expensive stability?


Prices for steel and stainless steel scrap remain high and reasonably stable. However, initial media reports from March indicate that scrap prices could rise even further.


Foreign exchange: The dollar currently at an advantage


The exchange rate between the euro and the dollar is still a bit unsteady but has been hovering around $1.20 since the beginning of February. The uncertainties in Europe and the upcoming stimulus program in the United States, are likely to work out rather to the dollar’s advantage.

From the overall development, it can be assumed that import prices for steel and stainless steel will also continue to rise.


Do you have any questions on the subject of alloy surcharges or would you like to talk to us in general? pls write back to sales@s4a-access.com  or call us: +86 755 29450011


Author: Written by Mrs Auguest Yu from S4A INDUSTRIAL CO.,LIMITED


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  S4A-Security For All.  S4A Industrial Co., Limited, Founded in 2010, We have been dedicating in access control production R&D and sales for 10year till now. With the belief that we do one thing well in a lifetime, our CEO has been in this industry for 15 years. During the past 10 years, our products have been exported to various countries and regions. And 90% of customers come from the recommendations of cooperative customers, and 80% of the turnover comes from cooperative customers in the past 10years.Your business is a plant, we are the gardener, our mission is to water and fertilize the plant, and make it become the towering tree. We attach great importance to the partner's appeal, customer's suggestions, and feedbacks. To strengthen Product quality awareness, client's service awareness. Our clients and S4A are on the same path walking for many years.       S4A's future would be even more brilliant, this is related to all of our staff's working sweat. When you join this team, you will feel an invisible power to drive walk forward. S4A mainly produces a series of security Door Access Control such as:Network Access Controller, Locker board, Electromagnetic lock, Standalone door Controller, Automatic door opener, etcOur team can manufacture products, sell products, and do after-sales.We can create value for you! 1-We put quality and price in top priorityQuality takes great importance for a company's credibility, and buyer's every penny spend must worth it. That is our most basic principle. Our business mainly for wholesale, so we could offer large quantities at competitive prices. During the past 10 years, We work hard to create value for our customers, and with our help, customers have an increasing market share. 99% of the customers who have cooperated with S4A will choose 2nd,3rd, and endless purchasing. because S4A not only controls the product quality very well, but the price is also very reasonable. As you can see, we have hundreds of products, but We do not produce all products. We adopt a portfolio strategy and invest in each factory. Because of the large export volume and the stable cooperation relationship with the factory, we can better control the quality and price of the products. Cooperate with us, you have no worries. In the past 10 years, more than 80% of our customers' sales have increased turnover by 15-20% every year. 2 -We have experienced and professional sales Our sales are not just sold products, we also help you choose products, do market research. Our company's top sales team all have more than 8 years of experience in the access control market, our team loves learning, loves sharing, good at summarizing, and dare to undertake responsibility. Because all of us regard the access control field as a career we love throughout our lives. At S4A, you can get a quick response and flexible support, and you can see our ability to solve problems. get professional guidance and recommendations, you don't have to worry about after-sales at all. Our task is: All emails must be replied within 2 hours at a working time!3-We have experienced and professional engineer S4A is equipped with 6 technical engineers for after-sales. and every year, We take out 20% of the net profit as research and development for new products, We all know Access control system is a kind of product with technical knowledge. When you have headaches such as unable to connect wires, Software compatibility issues or programming device, please remember S4A's after-sales support at any time. Our task is: All technical issues must be solved within 4 hours at a working time!4-Support OEM & ODM  All of our products accept OEM and ODM orders at a reasonable quantity. we help customers to promote their brand. We all know Access control is an increasingly popular industry. Based on past experience, we have found that customers who have just started to become distributors do not have a large number, but want to promote their own brands. For this kind of customer, we will also have a special application to do OEM for him. Because Support is mutual.5. S4A Vision Our Vision is to let all people in the whole world free their hands for keys, whether it is in poor areas or developed cities able to use access control.<
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