December 2023 Nickel & Surcharge Update
Monthly Nickel and Surcharge Update
December 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.
ANOTHER DECREASE IN DECEMBER!
- 316L Surcharge carried its November decrease into December
- Raw material elements (Nickel and Moly) took the biggest hit to drive surcharges lower.
- As of mid-November, the Q4 quota was full.
- Long lead times were the main concern for 2023. Lets see what 2024 brings!
Current Take
RAW MATERIAL PRICES: Raw material surcharges continue to drop as we start to close out 2023. Nickel and Moly were the two elements that were mainly responsible for the sharp drop. Moly hits it's lowest level since October 2022.
LEAD TIMES: Long lead times have been the story of 2023 due to high demand, low VIM, VAR, and finishing capacity, and labor shortages. All premium grades are into Q4 2024 and beyond. Uncertainty and apprehension to buy may rein them in, but the equal and opposite reaction may be stock outs. On the other hand, we are starting to see commodity lead times shrink.
BASE PRICES: No additional base price increases after the previous increase in October. We shouldn't see any additional increases as we close out 2023.
SECTION 232: Q4 quota is now closed! Quota was full sometime around mid-November. Reminder that the quota system is set to expire at the end of 2023! What is going to happen? Rumor has it we will see a two-year extension.
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:
- Tesla visits nickel plant in Indonesia for potential investment
- LNG And Offshore Energy Projects Face Delays As Nickel Prices Soar
- Outokumpu to cut German jobs as weak steel markets hit earnings
- India launches first part of critical minerals auction worth $5.4 bln
- Oil falls on demand fears and doubts over OPEC+ cuts
- Nickel prices rise on talk of Indonesia pricing change
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!