Stainless steel flat bar research institute MEPS pointed out that in early March, global stainless steel prices continued to strengthen, most notably the 300 series coils and sheets.
Healthy demand, severe material shortages and extended delivery times for replacement tonnage support this upward trend. Coupled with strong raw material costs, the prices of these products in Asia, Europe and the United States have risen to multi-year highs.
At the beginning of March, sales figures in Asia increased. However, the sharp drop in nickel costs in the first week caused some steel producers to lower their prices in the middle of the month.
Nevertheless, the average transaction volume of MEPS Asia in March was still at the highest level since mid-2014.
In recent weeks, many export quotations to European customers have fallen by about $100 per ton. However, it is reported that some Asian producers are more willing to provide their own market instead of accepting orders from overseas buyers.
In Europe, stainless steel flat product prices rose further this month. The average transaction price of MEPS 304 cold rolled coil in Europe in March was 2,671 Euros per ton. This is a price level that European stainless steel producers have never reached since June 2011.
Supply in the entire region is still tight. The delivery time has been extended, and many factories have already booked it until summer. Imports of cold-rolled materials are still sluggish, and the results of anti-dumping investigations on materials originating from India and Indonesia are awaited.
In March, the average transaction price of MEPS North America 304 cold rolled coil increased by US$70 per ton. Demand continues to exceed supply. As a result, distributors and traders cannot build inventory, and inventory in the region is still low.
In addition, the shortage of truck drivers has led to a substantial increase in transportation costs. Delivery of materials from overseas suppliers is still subject to Article 232 tariffs, which exacerbates the apparent shortage of stainless steel.
The fundamentals of the nickel market have now brought the metal’s price down to a more sustainable level. Nevertheless, the medium-term prospects for nickel are still optimistic, and there is no expectation that prices will plummet.
Therefore, in the near future, it is expected that the trading prices of stainless steel coils and sheets in all regions will remain at a relatively high level. In addition, tight supply and relatively strong demand in the stainless steel market are expected.
