Current Take

RAW MATERIAL PRICES: Raw material surcharges surged for the month of June. Most raw material elements increased more than $0.05/#. Due to this, the 316L surcharged saw a healthy increase. Nickel is still something to look out for as the price/# has been all over the board the last two weeks. Many people are saying it's because investors were waiting for the FED meeting while others are saying that China's decrease in stainless steel prices. We are still forecasting nickel to rise through the end of the year. With this surcharges will continue to increase.

LEAD TIMES: 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 during the month of May. Reminder: Mills increased pricing anywhere from 2% - 10% depending on the grade and size. 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 Q2 of 2024 is still open as of June 10th. Previous quarters in 2023 were filling up within the first 45 days. The election is right around the corner... what will happen?