April 2021 Nickel & Surcharge Update
April 2021 Update
Thanks for reading the Ram Alloys Monthly Nickel and 316L s/c update, intended to help our valued customers make educated business decisions.
Ni TUMBLES, MARCH 316L S/C FLAT?
- The 316L s/c Ni component fell by $0.05/#, but was equally offset by gains in Moly and Iron.
- This confirms our 316L s/c focus, as it contains all the relevant (and volatile) elements to illustrate the current pricing market.
- Increasing Moly and Iron means rising 410, 416, 17-4, 2205, and 2507 surcharges.
OFFICE CLOSED ON 04/02 TO OBSERVE GOOD FRIDAYHAPPY EASTER EVERYBODY!!!
Current Take
A stronger US Dollar, along with a surprising Chinese EV battery pivot derailed Nickel bulls. Some takeaways:
- Speculators, rather than the market, may have a heavier hand in prices than we'd like;
- The USD is a clear correlator (see graphs below - linear, inverse relation); and
- Despite these challenges, Ni remains well above 2019 and 2020 levels.
As mentioned last month, all major stainless bar mills recently increased base prices. Their ploy this month: fuel surcharge increase.
Yearly/Monthly 316L s/c and Ni Charts
USD Index (up) v. Nickel Prices (down)
Industry News
Click the links to read each article:
- Should nickel bulls be worried about 'dirty' Tsingshan battery metals
- Speculators shocked by China's use of lower grade Nickel in connection with EV battery manufacturing, despite greater environmental concerns
- The Moly Mystery. Why Is China Soaking Up The World’s Molybdenum
- China hoarding Moly resulting in higher Stainless prices
- Iron ore price surges to 10-year high, but have we seen the peak
- Chinese environmental goals could impact Iron futures
- United Steelworkers Strike At Nine Allegheny Technologies Facilities
- Must monitor, a lengthy strike could impact stainless pricing in an already tight market
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