August 2023 Nickel & Surcharge Update
Monthly Nickel and Surcharge Update
August 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.
S/C DROP WITH A BP INCREASE!
- 316L Surcharges continue to drop. How low will they go?
- Nickel continues to drop during July; new low for 2023
- Mills issue another base price increase!
- Moly drop cools down; raises during the month of July
- 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 dropped again. Most raw material elements dropped somewhere between $0.02 - $0.04/# with the exception of Moly.
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: Mills increase their base prices anywhere from 5% - 10% depending on the grade, eliminating any drop in surcharge.
SECTION 232: Q3 quota is still open, but how much longer will it last? Remember, Q2 and Q1 quota were full, and some products subject to the additional 25% tariff cost. Keep in mind, the quota system is set to expire this year.
Industry News
Click the links to read the articles below:
- Analysts mark down copper forecasts as output ramps up
- The Nickel Market's Roller Coaster Ride
- Industry groups urge LME to resist calls to ban Russian aluminum
- Lockheed Martin raises full-year forecast on strong weapons demand
- India's prime minister's office probing dumping of Chinese stainless steel, Jindal Stainless executive says
- Steelmaker Acerinox's net profit falls on lower steel demand, shares drop
EU Quota Info
EU Quota System Highlights:
- 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
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