January 2024 Nickel & Surcharge Update
Monthly Nickel and Surcharge Update
January 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.
2024 OPENS WITH A DECREASE!
- 316L Surcharge continues to decrease as we open up 2024
- Nickel was the main driver of the January decrease. All other raw material elements (Moly & Iron) stayed level.
- The US and European governments come to an agreement for Section 232
- What will lead times look like for 2024?
Current Take
RAW MATERIAL PRICES: Raw material surcharges continue to drop as we start to start 2024. Nickel was the main driver for the January drop. Many are saying pricing will start to increase due to capacity/lead times of premium grades.
LEAD TIMES: Long lead times were 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. With the strong demand for premium grades we expect this to remain the story. As for commodity grades, these lead times are starting to shrink as pricing decreases.
BASE PRICES: Be on the lookout for premium grades pricing as we start the year. We may see these prices increase as commodity prices continue to decrease.
SECTION 232: We finally have an answer on what will/did happen with Section 232 (see first article below). New system is set to expire at the end of Q1 of 2025.
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:
- Europe and US extend trade truce over Trump Tariffs
- Falling Nickel Prices Weigh Heavy on Stainless Steel Industry
- Maersk to decide on Red Sea route today after weekend attack
- Metals spend the year pinned between old and new cycles
- Indonesia nickel smelter furnace fire kills 13 workers, injures 46
- Oil prices rise on disruption fears after latest Red Sea attack
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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