Rising Nickel Cost = Higher Stainless Steel Fastener Prices
FEATURE
Courtesy London Metal Exchange
Nickel prices for stainless steel are rising and reached a two-year high in early May 2014. Bruce Wheeler of Star Stainless pointed out that “since January nickel has risen 35%, making it the best performing metal of the London Metal Exchange.”
Differing analysts predict higher and lower nickel prices in the coming months, but already there is “one thing for sure, the world of stainless fasteners will begin to see higher prices and longer lead times,” Wheeler told FIN. “The recent surge of nickel prices has prompted heavy purchasing from the serious stainless buyers causing producers to become very busy and lead times to stretch out.”
• Nickel rose to a two-year high on May 8, 2014 – reaching $19,786 a ton on the London Metal Exchange.
• “These days the nickel market is extremely reactionary to both positive and negative news,” Wheeler told GlobalFastenerNews.com.
• Some think nickel prices may have been pushed too far, but “on the flip side others think nickel will rise even further,” Wheeler observed.
• The global nickel market is dependent upon stainless steel production and stainless steel prices are likewise dependent on the price of nickel.
• Though stainless is mostly made of chromium, stainless pricing reacts primarily to nickel as it makes up 60% of cost even though it is only 8% of SS 304.
For more on global nickel prices, FIN Subscribers CLICK HERE.
Related Stories:
• U.S. Fastener Figures Reveal Modest Q1 Growth
• 10 Fastener Panelists Discuss Business Conditions in 2014
• Spirol International Expanding North American Headquarters
There are no comments at the moment, do you want to add one?
Write a comment