US Stainless-Steel CR Coil Market Improves in Mid-June Amid Rising Nickel Prices
- 21-Jun-2023 1:01 PM
- Journalist: Gabreilla Figueroa
In the ongoing week of June 20, the Stainless-Steel Cold Rolled (CR) Coil showed a rising trend in the US spot market amid the increasing feedstock Nickel prices and alloy surcharges. The rising Nickel price has provoked the Stainless-Steel market players in local and overseas markets to raise their Stainless-Steel CR Coil offers. The export offer price has also increased from overseas manufacturers such as from Indonesia and Chinese. The Chinese Manufacturers are increasing their production rate for Stainless-Steel CR Coil to gain profit margin as the market is on a higher edge. Moreover, the downstream demand from the construction and Building industries has grown significantly.
The inclining feedstock Nickel provided cost support in the production of Stainless-Steel CR Coil, as Nickel showed an uptick in price as it experienced a 1.15% increase from the starting June price in the exchange market. The Nickel inventory level lowers as the US government raises concerns over the catastrophic effect of Nickel Sulphate mining that is rapidly risking the natural environment. Power Nickel Inc. and Quebec Nickel, major Nickel producers in Canada, have announced participating in ‘The Mining Investment Event’ held between June 19 to 21 in Canada to upgrade their production units and modify their technology for environment-friendly extraction. The Stainless-Steel CR Coil market tends to show stagnancy in the upcoming time amidst rising prices accompanied by improved extraction methods for feedstock Nickel.
Furthermore, the price increase in the US Stainless-Steel CR Coil amid weak demand from local and overseas markets was due to the cost support from the alloy surcharge. The US Stainless-Steel CR Coil manufacturer frequently uses the ‘Base Plus Alloy Surcharge’ mechanism to increase their price even when then demand is cold from the spot market as the base price is always kept at a higher edge, and the disparity in price majorly comes from the change in feedstock alloy prices such as of Nickel, Cobalt, Manganese, etc. Although comparatively cheap imported Stainless-Steel CR Coil is available in the spot market from foreign suppliers, the buyers prefer to purchase from local manufacturers due to extended delivery lead time from the foreign manufacturers.
The demand for Stainless-Steel CR Coil from the downstream building and construction industry has increased as the US construction industry has experienced a 1.2% growth this week. The buyers from the local and overseas markets are placing healthy orders due to optimistic market sentiments. A strong demand remained from the medical equipment industries as they underwent a growth of about 4.3% this week and raised the price of Stainless-Steel CR Coil in the US spot market.
According to ChemAnalyst, the price of Stainless-Steel CR Coil is expected to show a stable price trend as the downstream market demand is ambiguous due to the arrival of monsoons in the local and overseas markets. The downstream construction industry is expected to be stable in the upcoming weeks.