European stainless surcharges rise for first time in months

Thu 25 Sep 2008

Alloy surcharges on European flat rolled stainless steel will rise for austenitic grades in October for the first time in months, figures so far announced indicate.

At least this is the case with those mills employing the more immediate four-week nickel price monitoring period. LME cash metal prices tested both higher peaks and lower troughs than in the price window used for September’s surcharges, but averaged a higher overall level.

Type 304 surcharges are up for the first time in five months, and type 316 rises for the first time in 6 months. Both have increased by up to 7% (see table for new figures). Generally steady molybdenum prices will have had little influence on type 316 calculations.

Austenitic surcharges announced by Spain’s Acerinox, which retains the minus 2-3 month nickel price window, have dropped by around 5% and 2% for types 304 and 316 respectively because of the lower average nickel price in July/August versus June/July.

With chrome prices relatively level, surcharges on ferritic type 430 show relatively little change whichever way they have been calculated.

This upward movement in austenitic charges contrasts with a weak, and possibly weakening base price for these grades, as previously reported by Steel Business Briefing.

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