Stainless steel demand on the rise?

According to a MEPS report stainless steel demand should be on the rise in the coming weeks. This is because of the expectation that stainless steel prices should fall, as nickel prices have been declining.

In fact, changes in the nickel price have been quite marked recently, with the nickel price falling to ~$25,000/tonne recently against earlier highs in 2011 of around $29,000 per tonne.

 

Visit our main website to track the nickel price and other non-ferrous prices.

 

blogger@steelonthenet.com

Who's watching the nickel price?

The current nickel price appears to be falling fast. From a recent high of $29,400 per tonne in February 2011, the LME nickel price has tumbled to just $21,650 / tonne today, with some analysts worried that nickel may soon breach the $20,000/t level. Expanding supply of the metal seems to be the cause of these price movements – especially from China where production of 'nickel pigs' [iron units made from low grade pig iron produced from laterite ore] is reportedly growing fast.

 

One wonders of course whether stainless steel prices will be following suit. Meanwhile for further comment, see http://www.ft.com/cms/s/0/a8ee7776-9846-11e0-ae45-00144feab49a.html#axzz1PSHz1uyD.

 

blogger@steelonthenet.com