July 2021 Nickel & Surcharge Update
July 2021 Update
Thanks for reading the Ram Alloys Monthly Nickel and 316L s/c update, intended to help our valued customers make educated business decisions.
WE HOPE EVERYONE HAD A WONDERFUL FOURTH OF JULY!!!
BASE PRICES INCREASED...AGAIN
- All major stainless steel bar mills issued their third base price increase of the year in May
- If this isn't a record, it should be.
- We are told this latest increase was in response to surging demand and the labor shortage
- The inflationary impact of this decision could be massive if surcharges continue their run
Current Take
Last month ferrochrome and iron were the focus, now molybdenum is stealing the show...and it's not even close (see 3 month chart below).
Molybdenum Spot Price increase:
· +14.36% from last month; and
· +42.91% from one year ago.
At some point, what goes up must come down, but every s/c pricing component is soaring. Well, except natural gas, but that may soon join the party, as Henry Hub is currently enjoying a nice boost.
Relaxing Section 232 tariffs could offer slight relief, and we still believe a decision in Q3 is possible.
The recent OPEC+ news should be monitored, as increased oil and gas manufacturing will result in increased demand for stainless and nickel alloys.
Yearly/Monthly 316L s/c and Ni Charts
Molybdenum...to the MOON???
Industry News
Click the links to read each article:
- Russia prepares export taxes on metals
- Indonesian planning to restrict nickel pig iron, ferronickel smelters
- U.S. battery market needs more nickel
- Republican Senators Urge Biden to End Trump-Initiated Trade War
- US steelmakers hustling to meet roaring demand
- When will stainless prices fall from multi-year highs?
- Oil prices rise to six-year highs after OPEC+ talks yield no production deal
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· Russia prepares export taxes on metals
· Indonesian planning to restrict nickel pig iron, ferronickel smelters
· U.S. battery market needs more nickel
· Republican Senators Urge Biden to End Trump-Initiated Trade War
· US steelmakers hustling to meet roaring demand
· When will stainless prices fall from multi-year highs?
Oil prices rise to six-year highs after OPEC+ talks yield no production deal