April 2022 Nickel & Surcharge Update
April 2022 Update
Thanks for reading the Ram Alloys Monthly Nickel and 316L s/c update, intended to help our valued customers make educated business decisions.
- As stated in our last update, our worry turned from supply to pricing, and we maintain that stance.
- EU energy crisis will impact pricing and supply - natural gas necessary to melt steel
- April Energy s/c = $0.20/lbs., and may hit $0.60/lbs. this summer.
- The threat of gas rationing is real, and some steel mills will lose their supply.
- LME NI price nearing 15 YEAR HIGHS
- Tremendous uncertainty with Ni trading given last month's stoppage.
- March LME Ni Average = ~$15.50/lbs.
- EU battling Covid resurgence, resulting in labor shortages and lost efficiencies
- We have confirmed this with several mills
Yearly/Monthly 316L s/c and Ni Charts
Ni Price History
- Could European countries implement oil and gas rationing
- German industry Gas rationing plan would cripple economy
- German industry sounds alarm over energy rationing plan
- Germany to increase defense spending in response to "Putin's war'
- In Russia Europe gas standoff, both sides lose
- How the Nickel market imploded
- UK regulators probe LMEs halt to chaotic nickel trading
- Germany to Nationalize Gazprom Unit to Safeguard Gas Supply
- USA/UK cut deal on Steel Tariffs
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
- Imported volumes > quota assessed a 25% tariff
- Exclusions apply, but adjustments under consideration
- Chaos and confusion are a certainty, clarity sometime late Q1/early Q2
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!