October 2023 Nickel & Surcharge Update
Monthly Nickel and Surcharge Update
October 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.
FIRST S/C INCREASE SINCE MARCH!
- 316L Surcharge flip positions from September as we are now seeing a decrease
- Raw material elements (Nickel, Chrome, Iron) all decreased in October
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- Moly saw a slight increase but nothing to drive surcharges higher
- October bring us the start of Q4. Lets see how long the quota will be open. Q3 quota was full after one month!
- Long lead times are still the main driver for 2023 pricing with demand staying strong and limited availability
- Lead times are still well into Q4 2024 depending on grade with some falling into 2025!
Current Take
RAW MATERIAL PRICES: Raw material surcharges erased its gains from September. This month we are now seeing a decrease in raw material elements (Nickel, Chrome, Iron).
LEAD TIMES: Long lead times continue to be the story of 2023 due to high demand, low VIM, VAR, and finishing capacity, and labor shortages. All 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.
BASE PRICES: Base prices only increased one time during Q3. With the start of Q4 we see no change in base prices and we expect this to remain the story as we close out 2023.
SECTION 232: Q4 quota is now open! Reminder, it only took 31 days for the quota to fill. Many are predicting quota will fill sooner for Q4 due to free trade zones. Remember, Q3, Q2, and Q1 quota were full, some products subject to the additional 25% tariff cost. Keep in mind, the quota system is set to expire this year. What will happen?
Industry News
Click the links to read the articles below:
- Copper's Price Curve Hasn't Looked Like This In Decades
- Is The LME Losing Its Grip On Global Nickel Pricing?
- Historic UAW Strike Spells Uncertainty For Steel Prices
- China's Economic Resurgence Boosts Global Commodity Prices
- European stainless prices increase amid limited imports
- Oil rebounds from 3-week low, settles up despite stronger dollar
- Exclusive: Shanghai exchange exploring potential LME nickel rival
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!