Stainless steel market participants in the US expect prices to move lower in the coming weeks, with the drop in surcharges for October the main contributor.
American Metal Market assessed Type 304 and Type 304L stainless steel cold-rolled sheet at $1.38 per lb and $1.40 per lb respectively on Friday September 28 compared with $1.405 per lb and $1.425 per lb respectively a month earlier.
“It’s a given that a drop in surcharges will lower net transactional pricing,” one distributor in the US Midwest said, referring to a decline in October stainless surcharges announced by major mills last week.
“I see reduced pricing going forward because of [declines in] prices of LME nickel, chrome and iron,” a distributor on the East Coast.
A small decline in LME average nickel prices in September and a drop in the fourth-quarter benchmark chrome price resulted...