April 2024 Nickel & Surcharge Update
Monthly Nickel and Surcharge Update
April 2024 Update
Thanks for reading the Ram Alloys Monthly Nickel and 316L s/c update, intended to help our valued customers make educated business decisions.
HEALTHY APRIL INCREASE!
- 316L Surcharge SURGE for the month of April
- Nickel was the main driver for the April increase.
- How long will surcharges climb
- Premium grades are still in high demand in 2024
- What will Nickel do in the months to come?
- Section 232 News
Current Take
RAW MATERIAL PRICES: Raw material surcharges surged for April as raw material elements raised. Nickel was the main driver for this increase as we see nickel talks come to fruition (see chat below). Nickel is still expected to continue its rise in the months ahead along with other raw material elements.
LEAD TIMES: Long lead times are the story for 2024 due to high demand, low VIM, VAR, and finishing capacity, and labor shortages. All premium grades are into Q2 2025 and some nickel grades into 2026!!. With the strong demand for premium grades we expect this to remain the story. As for commodity grades, lead times are still shrinking, but pricing may increase in the months to come.
BASE PRICES: No new base price increases as mills issued a base price increase for premium grades in February. Premium grades are still hard to find even though commodity grades are available. Due to this high demand, mills will continue to increase their pricing and draw out lead times. Expect this trend to continue for the next 2 years at the very least.
SECTION 232: The quota for Q1 of 2024 took longer than expected to fill up. Previous quarters in 2023 were filling up within the first 45 days. As of March 1st, the quota was only 70% full. What will happen with the quota system given the election year?
Yearly/Monthly 316L s/c and Ni Charts
LME Ni Stock (up) vs LME Ni $/# (down)
Industry News
Click the links to read the articles below:
- Acerinox sees steel market improving after 2023 profit more than halves
- OPEC+ members extend oil output cuts to second quarter
- Nickel rout is energy-transition warning for West
- Low-Cost Nickel from Indonesia is Flooding The Market
- For many in China, the economy feels like it is in recession
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
Ram Alloys is a niche service center supplying a complete inventory of stainless steel, nickel products, pump shaft quality bars, and boat shaft quality bars in a full range of standard grades. Value-added services include comprehensive and customized processing options, prompt shipping, same-day order turnaround, and 24/7 availability. We're here to ensure that your procurement needs are met quickly and accurately, minimizing schedule impacts and return material authorizations. Request a quote today!