April 2023 Nickel & Surcharge Update
Monthly Nickel and Surcharge Update
April 2023 Update
Thanks for reading the Ram Alloys Monthly Nickel and 316L s/c update, intended to help our valued customers make educated business decisions.
NEW MONTH... DIFFERENT STORY
- 316L Surcharges decrease for the first time in 2023
- Nickel plummets in the month of March, far off from recent highs
- Energy surcharges remain level as we start the Spring Season
- Base prices stay consistent but are still high relative to previous years
- Long lead times are the main driver for 2023 pricing
- Lead times are officially into 2024 with some extending into Q4 2024
Current Take
RAW MATERIAL PRICES: Raw material surcharges decreased for the first time in 2023. Nickel takes a tumble along with other raw material elements. Moly has cooled, following what was essentially a 45-degree increase this year.
LEAD TIMES: Long lead times will be the story of 2023 due to high demand and labor shortages. All grades are into Q1 2024 and beyond. Uncertainty and apprehension to buy may rein them in, but the equal and opposite reaction may be stock outs...not helpful. The balancing act continues.
BASE PRICES: Mills cooled off for the month as we did not see an additional base price increase. Base prices are expected to stay at current levels for an extended period of time.
SECTION 232: Q2 means the quota is back open but how long will this last? Once the quota is filled the 25% tariff will be back. The 25% tariff was in play during Q1.
Industry News
Click the links to read the articles below:
- India's Steel Industry Is Set To Boom This Year
- Economic Worries Weigh On Nickel Prices
- Indonesia's Merdeka Battery plans to build two nickel HPAL plants
- India's Jindal Stainless strikes $157 mln deal to secure nickel supply
- Analysis: UK watchdog's nickel probe poses more reputational hazard for LME
- OPEC+ announces surprise oil output cuts
- U.S. factory orders post second straight monthly decline in February
- LME launches sweeping plan to revive nickel contract
EU Quota Info
EU Quota System Highlights:
- Quotas by EU country, not mill, and by HTS Code, not grade
- Quarterly volumes based on a first come/first served bases
- Link: US Customs and Border Protection Quota Bulletins
- Link: US Customs and Border Protection Quota Utilizations found in its Commodity Status Reports
- Imported volumes > quota assessed a 25% tariff
- Exclusions apply, but adjustments under consideration
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