September 2023 Nickel & Surcharge Update
Monthly Nickel and Surcharge Update
September 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.
FIRST S/C INCREASE SINCE MARCH!
- 316L Surcharges rise for the first time since March 2023
- Moly and nickel both saw an increase from the previous month
- Q3 quota is now full! Material inbound will be hit with 25% tariff
- 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 increased for the first time since March 2024. Raw material elements (Moly, Nickel, chrome, etc.) each increased for the month of September. Moly was the main driver for the SC increase/.
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: Reminder, the mills issued a 5% - 10% base price increase last month. Demand is still high and lead times are still long out. Who is to say we won't have another base price increase before the end of the year.
SECTION 232: Q3 quota is now full! It only took 31 days for the quota to fill. Any material arriving now will have the 25% tariff tagged on. Remember, Q2 and Q1 quota were full, 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:
- Massive Copper Theft Scandal Sends Shockwaves Through Metal Market
- China nickel producers look to London exchange in dash for profit
- New Singapore commodity exchange aims to launch EV nickel contract this year
- EU stainless steel producers with order books filling up - Stainless Espresso
- US oil, gas rig count drops 9 to 705 as activity hits 20-month low
- America's manufacturing boom is facing a labor crunch
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
- 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
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!