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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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