May 2024 Nickel & Surcharge Update
Monthly Nickel and Surcharge Update
May 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.
STEADY MONTH AHEAD!
- 316L Surcharge stayed the same from April to May
- What is the deal with raw material elements
- New base price increase?
- 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 stayed level for the month of May. Most raw material elements went up or down by $0.01/#. Due to this, the 316L surcharged stayed the same as April. Nickel is still something to look out for. We are forecasting nickel to rise through the end of the year. With this surcharges will continue to increase.
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: A second base price increase was issued for premium grades during April. 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 May 10th. Previous quarters in 2023 were filling up within the first 45 days. As of March 1st, the quota was only 70% full. The election is right around the corner... what will happen?
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:
- The Renewable Revolution Hinges on Recycled Metals
- Global Metals Markets Face Uncertainty as Russian Ban Takes Effect
- How Copper is Defying Weakness in China to Make A Serious Bull Run
- India's Jindal Stainless to invest $647 mln for acquisitions, increasing capacity
- EU should do more to curb steel imports from Asia, says Acerinox CEO
- LME plans for Aluminum producers to submit carbon emission data by 2025
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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