News

11 June 2014

The rise in prices for stainless steel is inevitable

If we consider the activities of large metallurgical enterprises in the context of the entire world community, then we can see a certain isolation of the entire production cycle and the complete dependence of many industrial re-distributions from each other. Thus, an increase or decrease in prices for one or another type of raw materials inevitably leads to fluctuations in cost stability in other branches dependent on the primary source. The recent increase in nickel prices, according to the analytical department of MEPS in a very short time will lead to higher prices for stainless steel products. According to the latest results at the end of May, the value of one ton of nickel reached its record high and amounted to 21 thousand US dollars. This price indicator is almost fifty percent higher than the limit indicated at the beginning of this year. A group of analysts from the well-known agency MEPS located in Britain compared the rise in price of nickel and the increase in the selling price of stainless steels, as their cost today is at least 38 percent higher than the limit announced by suppliers at the beginning of the year. Such rapid growth of nickel has become a complete surprise for some manufacturers of stainless materials. In a particularly vulnerable situation were the steel grade type "austenite", where the percentage of nickel is very high. By the way, in connection with such a difficult situation in the metal market, suppliers will have to raise even more the selling prices for the final stainless product. Especially evidently, such growth will be visible in June. In addition, the situation is exacerbated by a constant increase in the cost of energy carriers. After all, the production of stainless steel or profile structures of this type is a very labor-consuming and energy-intensive process. However, all the difficulties of the industrialists did not affect demand much. After all, stainless steel, thanks to its high performance characteristics, is used in particularly critical and hazardous production sites. According to the same British analytical agency MEPS, the growth of the final product from stainless steel will be at least five percent in the context of the entire world community, this year already. The Chinese contribution to the development of such an industry will slightly exceed the world average and amount to almost seven percent. At present, the stainless steel complex is a very good investment of finance, due to the steady growth in demand for important strategic raw materials.

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