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Commodities:
Stainless steel buyers look for substitutes
Propurchaser
Stainless steel prices have risen nearly 40 per cent in North America in the past six months, on the back of steep increases in the prices of mild steel and nickel, which are both key cost-drivers.
While nickel prices have retreated from record high levels reached in July, (US $30,000 per metric ton, on the LME), they still remain near historic highs; and mild steel prices are up more than 15 per cent since January.
Naturally, buyers of stainless steel are concerned. And producers of stainless steel are worried about losing long-term market share. Therefore, they're offering customers a range of alternatives, in an effort to prevent business being lost to non-ferrous or carbon steel materials. Such options include lower-nickel duplex grades and ferritic types.
But sourcing cost-effective alternatives isn't that easy right now. Copper prices have risen by almost 60 per cent so far this year, and stand at record high levels. Galvanized steel sheet prices are currently up about 40 per cent since January, largely because of a 52 per cent increase in the price of zinc.
Perhaps the most attractive alternative to stainless is aluminum, where the LME price in mid-August was up less than five per cent since the beginning of the year.
Commodities information this month has been provided by Propurchaser News Services. Purchasing b2b readers enjoy an extended 45-day trial. Please see http://www.propurchaser.com/pb2b for more information.
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