Surcharge drop knocks US stainless prices

US stainless steel prices fell again in June due to lower monthly surcharges, which are expected to drop again in July, although base prices have remained steady.

“Base prices are holding,” according to a mill source. “Our sales have been excellent through the first five months of the year. Historically, we always have a good first six months. “We’re optimistic, we do not hear many negative rumblings about end-user consumption,” he added. A US Midwest distributor concurred. “It’s a flat line as far as I can see with base pricing,” he said. “Prices have gone down, but only because of the surcharge, not because of the base price.” Some distributors expect the surcharges to drop again next month. “I have factored in an 8-9% decrease in [Type] 304,” a second Midwest distributor said, and he expects base prices to remain stable, possibly through the summer. Most of the surcharge drop in July will be caused by collapsing ferro-chrome prices, distributors said. Ferro-chrome is predicted to settle at $1.15 per pound for the third quarter, according to...

Published

Grace Lavigne Asenov

June 12, 2017

12:07 GMT