For the Quarter Ending March 2024
North America
In Q1 2024, the pricing environment for Hastelloy in the North America region was challenging, with market prices experiencing significant fluctuations. Several factors influenced the market prices during this quarter. One of the main factors was the oversupply of feedstock Nickel, which led to a decline in Hastelloy prices. The increased supply of Nickel was driven by global mining expansions, including the Minnesota Copper-Nickel Mining project, which saw increased activity. Additionally, cheaper imports from Chinese manufacturers prompted US Hastelloy industries to adjust their prices to remain competitive in international markets.
The demand for Hastelloy in the region was moderate, with a decline in downstream industries such as construction and automotive. The winter holidays and severe weather conditions further dampened demand during this period. Uncertainty surrounding government policies, interest rates, and the reduce sales of the electric vehicle sector also contributed to a decrease in demand.
In the USA specifically, the pricing environment for Hastelloy saw significant changes. The USA market demonstrated more resilience compared to Europe, but weak demand from international markets and cautious buyers impacted prices. Overall, the pricing environment for Hastelloy in Q1 2024 can be characterized as bearish, with high supply levels and low demand. The market experienced fluctuations due to factors such as oversupply of feedstock Nickel, cheaper imports, and uncertainties in the downstream industries. The latest quarter-ending price for Hastelloy B-3 DEL Florida in the USA was USD 98169/MT.
APAC
In Q1 2024, the pricing of Hastelloy in the APAC region experienced a mix of trends and influences. Overall, the market was stable, with some slight fluctuations in prices. However, Japan stood out with the maximum price changes. Several factors influenced the market prices of Hastelloy during this quarter. The global supply of Hastelloy remained sufficient, but there were concerns about oversupply and excess inventory levels. This was largely due to steady production despite lower demand, both domestically and internationally. Trade disruptions, such as attacks in the Red Sea route, further impacted the market, leading to uncertainties and cautious behaviour among buyers. In Japan specifically, the pricing environment for Hastelloy was volatile. The country experienced significant price changes, with prices fluctuating throughout the quarter. Various factors, such as reduced demand in downstream industries like automotive and manufacturing, played a role in the price decline. The suspension of production by Daihatsu, a Toyota subsidiary, also contributed to the downturn. Looking at the overall trends, there were no clear seasonality patterns observed in the pricing of Hastelloy during this quarter. By the end of the quarter, the latest price for Hastelloy B-2 Ex Osaka in Japan was recorded at USD 86678/MT. This marked the closing price for the quarter and reflected the overall pricing environment for Hastelloy in Japan. In conclusion, the pricing environment for Hastelloy in the APAC region during Q1 2024 was generally stable, with some fluctuations observed in Japan. Factors such as reduced demand, trade disruptions, and production suspensions influenced the market prices. Overall, the market faced challenges, but stability was maintained throughout the quarter.
Europe
In Q1 2024, the European Hastelloy market saw nuanced price fluctuations primarily driven by a complex interplay of supply chain disruptions and variable demand. January began with a notable rise in prices due to increased freight charges and escalated production costs, influenced by disruptions in nickel supply and Suez Canal trade routes. February experienced a slight increase, attributed to ongoing supply constraints spurred by industrial disputes and operational issues at key manufacturing sites such as Acerinox in Spain and Outokumpu in Finland. These challenges tightened inventory levels and extended lead times across Europe. The rising demand from infrastructure and construction projects further stressed the available stock, pushing prices upward. As March arrived, the trends from the earlier months persisted, with supply still struggling to meet the robust demand driven by recovering sectors like automotive and new energy projects. Throughout the quarter, the market wrestled with the challenge of ramping up production capacities against a backdrop of strained supply chains and escalating raw material costs, particularly nickel, essential for Hastelloy manufacturing. This period was marked by cautious optimism mixed with tangible challenges as stakeholders navigated through shortages and demand surges in a volatile market landscape. The quarter ended with stakeholders emphasizing the need for strategic actions to stabilize the market, including addressing supply chain disruptions and enhancing production capacities to cope with the rising demand and ensure the resilience of the European Hastelloy market.
MEA
The first quarter of 2024 has been challenging for the Hastelloy market in the MEA region. Overall, the market experienced a negative trend, with prices declining compared to the same quarter last year. Several factors influenced market prices during this period. In the United Arab Emirates (UAE), which saw the most significant price changes, Hastelloy prices experienced a decline. This decrease can be attributed to various factors, including global economic uncertainty and disruptions in the Red Sea route. Saipem's projection of decreased orders from Saudi Aramco also impacted demand for Hastelloy in the UAE spot market. Additionally, the construction sector in the UAE witnessed a downturn, leading to lower demand for Hastelloy and other stainless-steel products. However, there were positive developments in terms of capacity expansion and sustainability efforts by major players like Arabian Gulf Hastelloy Industries (AGSI) and Emirates Hastelloy Arkan. The pricing trend for Hastelloy in the UAE followed a bearish pattern, with supply levels remaining high and demand levels low. This trend was consistent with the overall market sentiment in the MEA region. Looking at the price changes within the quarter, there was a slight decrease in prices from the previous quarter. However, it is important to note that the market experienced a seasonal slowdown in the latter part of the quarter, resulting in limited trading volumes. In conclusion, the pricing environment for Hastelloy in the MEA region, particularly in the UAE, has been negative and unstable during the first quarter of 2024. Factors such as economic uncertainty, disruptions in trade routes, and a downturn in the construction sector have contributed to the decline in prices.
For the Quarter Ending December 2023
North America
In the North American region, the market for Hastelloy in the fourth quarter of 2023 saw a significant decline in price trends and was characterized by various factors that influenced pricing dynamics. Firstly, In October, US Hastelloy prices surged due to heightened demand from the chemical and automotive sectors, exacerbated by a limited supply of steel scraps and Nickel feedstock. Strong economic indicators, including increased bond yields and a robust ISM industrial index, characterized the US economy.
November saw a decline in Hastelloy prices, attributed to elevated production rates and reduced consumption from downstream industries. Outokumpu's production expansion and surpluses in feedstock contributed to the shift. December witnessed continued low Hastelloy prices due to increased inventory levels and reduced downstream demand. Global Nickel mining grew, fueled by an uptick in feedstock supply and progress in the Minnesota Copper-Nickel Mining project.
Cheaper Chinese imports prompted US Hastelloy industries to adjust investments, impacting domestic prices. Winter holidays, severe weather, and uncertainty in government policies and the electric vehicle sector led to diminished demand in the US spot market. The price of Hastelloy C-276 DEL Florida in the USA at the end of the quarter was USD 57731/MT.
Asia-Pacific
In the APAC region, the Hastelloy market in Q4 2023 declined amidst several key factors indicating a pessimistic market sentiment. Firstly, In October, Hastelloy prices in the Japanese spot market declined due to sluggish demand from domestic Automotive and Chemical sectors, while metallurgical coke prices in India and China increased. Stable material supply supported local Automotive manufacturing growth, driven by strong demand from Japanese automakers. Rising prices for non-coking coal and global energy price hikes boosted demand for Hybrid and electric vehicles. In November, Hastelloy prices dropped amid increased supply and reduced end-use demand. Japanese steelmakers invested in new technologies, contributing to a surplus supply of Hastelloy. China's Ministry of Commerce re-investigated anti-dumping measures, and competition from neighboring nations intensified. In December, Hastelloy prices continued to decline due to lower trading rates, oversupply in Japanese warehouses, and damping overseas demand. Stainless Steel exports dropped, influenced by disruptions in the Red Sea route and reduced demand in downstream industries. Challenges persisted, with a decline in Japan's industrial output, factory shutdowns, and overall trade disruptions impacting the steel industry. The latest price for Hastelloy C-276 Ex Osaka, Japan in Q4 2023 is USD 65164/MT.
Europe
In the fourth quarter of 2023, the Hastelloy market in Europe showed a slight inclining price trend due to several factors. Firstly, In October 2023, the German spot market experienced a surge in Hastelloy prices driven by increased demand from the automotive and chemical sectors, exacerbated by a decrease in raw material supply. Production rates declined, affecting global and domestic inventory levels for steel scrap and Nickel pig iron. Challenges with the EU Carbon Border Tax prompted EU steelmakers to reinforce the export ban on EU ferrous scrap, raising concerns about future availability. In November, Hastelloy prices declined due to reduced demand and oversupply. Global manufacturers, led by Nornickel, maintained a competitive edge in supplying Nickel. Downstream battery industries' reduced consumption increased domestic inventory levels. Diminishing production costs contributed to the fall in Hastelloy prices. Climate change protests affected the Australian coal sector, while wind power was projected to surpass coal in electricity generation by 2026. By the end of 2023, Hastelloy prices continued to decline due to excess supply and reduced demand. Concerns over escalating production costs led to an extended production pause by Arvedi Acciai Speciali Terni. The establishment of ArcelorMittal's Torero plant in Belgium mitigated carbon emissions, while the withdrawal of German government subsidies for electric vehicles in December impacted EV sales and the Hastelloy sector. The latest price for Hastelloy B-2 Ex Werdohl in Germany in the fourth quarter of 2023 is USD 96630/MT.
MEA
In the fourth quarter of 2023, the Hastelloy market in the Middle East region experienced stability in price, showing a slightly declining performance throughout the quarter. In November, Hastelloy prices in the UAE spot market experienced a decline due to reduced import costs from the Asian market, driven by lower domestic demand. The country extended its export ban on steel and stainless-steel scrap until December 2023, emphasizing the importance of waste in stainless-steel production. The global stainless-steel scrap market's strategic significance was highlighted, despite the UAE's smaller tonnage compared to the EU. The decline in Hastelloy prices continued in November due to lower downstream demand and surplus local supply, influenced by decreasing feedstock Nickel and Stainless-Steel scrap prices. Australian coal prices dropped due to increased production but faced challenges with shipping disruptions from a climate change protest at the Port of Newcastle. Wind power is expected to surpass coal in electricity generation by 2026. In December, Hastelloy prices stabilized with sufficient supply and firm demand from the construction and automotive industries. Trade disruptions in the Red Sea route raised concerns, impacting imports. Despite uncertain trade rates, the construction and automotive sectors in the UAE and the Middle East maintained solid demand. The COP28 meeting in December indicated a growing interest in electric vehicles, and anticipated construction projects are expected to drive Hastelloy demand in the UAE spot market until 2025. The UAE experienced fluctuations in prices but ended the quarter with a price of USD 51108/MT for Hastelloy C-276 Ex Dubai.
For the Quarter Ending September 2023
North America
In the third quarter, the price trend for Hastelloy experienced a notable rise in the USA. This was influenced by several factors impacting the global Hastelloy market, particularly in the USA. First, in the US, the demand for Hastelloy decreased due to a downturn in the downstream chemical sector, attributed to a small recession period. BASF, a major chemical producer globally, faced challenges due to a shortage of experienced labor, further reducing manufacturing activity and Hastelloy usage. The company initiated an apprentice training program to address this labor shortage. The US federal interest rate hike also played a role in discouraging buyers from placing large orders for Hastelloy. The anticipation of a price decline led to hesitancy among buyers. The global supply of Hastelloy increased due to declining consumption rates and a pessimistic price trend. This was exacerbated by the surge in nickel supply from Indonesian mills and increased production by foreign companies. In response, mills offered Hastelloy at lower prices with discounts to reduce their inventory levels. The overall demand for Hastelloy was also impacted by reduced production rates in the chemical, oil, and gas sectors, reflecting the broader economic downturn.
Asia-Pacific
In the third quarter, Hastelloy prices in Japan saw a decline driven by surplus nickel supply and reduced global demand. This surplus came from increased nickel extraction in South African and Australian mines. Moreover, Japanese nickel inventories grew due to a long-term supply agreement between Australia's Adrea Resources and a Japanese consortium backed by a $2 billion investment in the Kalgoorlie Nickel Project. This development benefited Japanese automotive companies like Mitsubishi Corporation, Sumitomo Metal Mining, and Mitsui & Co. Altilium's agreement to recover nickel from end-of-life EV batteries also contributed to the oversupply, reducing Hastelloy production costs. Lower Hastelloy prices led to diminished demand from local automotive and construction sectors, resulting in fewer large orders. However, in mid-Q3, Japanese Hastelloy prices rebounded due to an increase in downstream inquiries. Wholesale inflation in Japan slowed in August, providing relief to households and retailers affected by previous commodity cost increases. The central bank emphasized the need for an ultra-loose monetary policy until inflation was driven by domestic demand. Despite rising input costs, Japanese manufacturers raised selling prices at the slowest rate in two years due to labor costs and exchange rate weaknesses affecting overall business expenses.
Europe
In the third quarter, Hastelloy prices in Germany saw a notable upward trend. The rising price trend can be attributed to several factors; firstly, the surge in demand, especially in the northern direction, created bullish sentiment in the market. Despite mills operating at a standard rate, the demand was boosted by new deals signed within the German spot market. Linde, a major chemical company in Europe, signed a deal with the Brazilian government for a substantial supply of renewable energy, which will increase chemical manufacturing and the demand for Hastelloy used in heat exchangers. Furthermore, OMV (Norge) secured a significant deal for the Berling Gas Project, increasing the demand for Hastelloy due to its corrosion-resistant properties in challenging environmental conditions. Local suppliers controlled stock releases, attracting major market players to the German Hastelloy market. Downstream chemical industries continued to place large orders as optimism grew in the market. Additionally, factors like investigations by the European Commission into anti-dumping measures on stainless steel imports, along with slower production rates and increased energy and raw material costs, further impacted Hastelloy prices in Germany. The demand remained high, particularly from the hydrogen fuel and marine sectors, as clean energy initiatives and infrastructural development drove consumption.
MEA
In the third quarter of the year, Hastelloy prices in the UAE experienced a noticeable upward trend. This rise was preceded by a slight increase in the middle of the second quarter as stainless-steel mills in the UAE maintained their selling prices amidst slowing demand and increased import competition. Economic uncertainty in the United Arab Emirates led to concerns about a potential slowdown in the manufacturing sector as customers became more cautious due to rising living costs and higher interest rates. The focus shifted towards the services sector, where inflationary pressures persisted. Despite economic uncertainties, domestic factory sales values continued declining, prompting buyers' caution. However, there were signs of an upswing in Hastelloy prices in mid-Q3 driven by increased output and new business intakes, even though demand had eased from its peak in the second quarter. Optimism improved, leading to increased procurement and job creation, albeit with ongoing discounts on selling prices. In terms of regional cooperation, Türkiye and Saudi Arabia signed a memorandum of understanding to collaborate on critical minerals, technology, solar panels, and electric cars. Saudi Arabia's interest in renewable energy sources like hydrogen, wind, and solar power played a significant role in this agreement.
For the Quarter Ending June 2023
North America
In the second quarter of 2023, Hastelloy prices in the US market experienced a downward trend despite price upliftment in April and May. The initial phase of Q2, shows increasing price trend due to various reasons including reopening of China's economy and stronger-than-expected industrial growth in Europe and the US. The demand for Hastelloy from downstream construction and structural equipment was boosted by these factors, along with a correction in the US dollar, which stimulated demand further. The global economy's prevailing uncertainty, caused by the Russia-Ukraine war and rate hikes by the US Federal Reserve, outweighed the positive demand effects and limited price increases. Geopolitical headwinds impacted the metal complex, resulting in a volatile trading year and ending in negative returns. As per market players, the current market dynamics of the US are full of uncertainties amidst the apparent slowdown in the European and US Economies. On the other hand, in the H2 of second quarter, the price of Hastelloy gets plunged as the US stainless steel mills continue to maintain their selling prices amid pressure from slowing demand and rising import competition. Companies report that customers have become increasingly reticent to spend amid the rising cost of living, higher interest rates, growing concerns about the economic outlook and a switch in spending to services. Prices charged for superalloys leaving the factory gate meanwhile barely rose in June amid increasing reports of discounting, indicating a near-total collapse of inflationary pressures in the goods-producing sector.
Asia- Pacific
In the Japanese market, Hastelloy prices experienced an upward momentum in Q2 of 2023 due to fluctuating raw material nickel costs and stable demand from the downstream chemical processing industries. The manufacturing environment in Japan reflected ongoing challenges and the need for cautious monitoring of economic conditions and demand trends. Overall, inflationary pressures remained elevated, but input prices rose at a slower pace. Manufacturers aimed to protect profit margins by passing on higher costs to customers, leading to an acceleration in charge inflation. The price hike in May was owing to the disruption in the supply chain amidst the stable downstream demand from the chemical processing industries. The raw material iron ore prices quoted by traders and domestic iron plants diverged. On the demand side, the spot Hastelloy suppliers curtailed their quotation to win the deals amidst the limited demand and rising social inventory level in the overseas market. As per market players, the Bank of Japan maintained its ultra-easy monetary policy on Friday despite stronger-than-expected inflation, signaling it will remain a dovish outlier among global central banks and focus on supporting a fragile economic recovery. The Bank of Japan (BoJ) held the first policy meeting under new governor Kazuo Ueda in April and the second in June. There was no change to policy, which suggested their dovish stance continues. While the BoJ maintained its cautious stance on the continuity of inflation and wage growth in Japan, the macroeconomic figures continued to suggest solid progress.
Europe
In the German market, the prices of Hastelloy remained unchanged and stagnant throughout the second quarter of 2023. On the supply side, there has been a balance between production capacity and market demand, resulting in stable prices. On the demand side, the limited fluctuations in Hastelloy prices suggest a relatively steady demand from key industries such as chemical processing, aerospace, and oil and gas. The consistent demand for Hastelloy products in these sectors has offset any potential price fluctuations. Meanwhile, the Hastelloy prices showcased a northward momentum in May owing to the fluctuating raw material Nickel costs amidst the rise in inquiries from the downstream chemical processing industries. Major players claim that the supply crunch is the major factor aiding the Chromium price hike. Economic uncertainty was cited among the reasons for the price fluctuation, leading to a stronger focus on costs among end users. Stainless steel mills in Europe are understood to have been operating at significantly reduced rates during the second quarter because of poor demand and low prices. Activity is quiet in all countries, with clients ordering only back-to-back or not ordering at all. Lower consumption is forcing mills to cut production to balance demand and supply. Market sentiment remains grave. In addition to the reduced supply, stabilizing stainless steel scrap prices have been a factor in the stainless-steel prices approaching the bottom.
MEA
In the UAE market, the Hastelloy prices showcased an uptick in the price momentum in the month of April owing to the fluctuating raw material prices amidst the increasing inflationary pressure. As per market players, Hastelloy prices rose in April to signal an even stronger rate of expansion across the non-oil economy, driven by rapidly increasing new orders and retreating inflationary pressures. Rising demand and rapid capacity improvements helped to drive confidence towards future activity higher. The strong rise in new business underlined growing confidence across surveyed firms about economic prospects. In H2 of the second quarter, the Hastelloy prices showcased an upswing price trend in the ending-Q2 as the downstream companies such as Chemical processing equipment manufacturers increased their purchasing activity markedly in response to greater workloads and as part of efforts to replenish inventories. United Arab Emirates traders are increasingly turning to the market leader to ensure price consistency and stability. The ability of firms to secure increasing volumes of new business continued unabated in June, with the growth of new work accelerating to a four-year high. Some of this growth was predicted on the offer of discounts to customers, however, which may not be sustainable in the long term given that input costs are rising. As per key players, the non-oil private sector remained on a strong footing at the midway point of the year and is well-placed for further growth in H2 2023.
For the Quarter Ending March 2023
North America
During the first quarter of 2023, the US Hastelloy market exhibited a stagnancy in price momentum due to concerns about rising interest rates by the Federal Reserve and fears of an economic recession among market participants. Despite strong demand in the spot market, Hastelloy prices in the United States fell quickly in January. Buyers continued to meet their requirements through long-term contracts, avoiding the spot market, which remained quiet. In February, weak sales in both the domestic and export markets contributed to lower demand, while input costs and output charges continued to rise, increasing price pressures. The recent banking problem in March raised concerns about the possibility of an economic recession. While demand for Hastelloy remained constant, the outlook for the future was bleak, with uncertainty about when the market would recover. Downstream inquiries were modest to moderate as the international scope of the business faced significant challenges. As a result, the market became more regional. The ripple effect was that the prices of Hastelloy C-276 for Ex Florida (USA) settled at USD 142010/MT.
Asia Pacific
The first quarter of 2023 saw Hastelloy prices in the Chinese market remain stagnant due to oversupply and average demand from the downstream automotive and oil & gas industry. After the Chinese New Year holiday, raw material prices increased, but actual market transactions were few. The shortage of manpower at molybdenum smelters and limited molybdenum concentrate resources on the market led to a decrease in molybdenum output, while the social inventory of the main raw material for nickel increased slightly, keeping nickel prices low. The Hastelloy market continued to experience an oversupply situation with average demand both domestically and internationally in March, despite steel mill output and destocking rates increasing. The manufacturers were reluctant to sell at lower prices and instead inclined to raise prices. However, demand for downstream procurement remained lackluster, leading to slow inventory turnover. As a result, many steel mills announced production reductions and maintenance. The ripple effect of this situation was reflected in the Hastelloy C-276 prices for Ex Shanghai (China), settling at USD 43646/MT.
Europe
During the first quarter of 2023, the European Hastelloy market experienced a significant upward trend in prices, driven by lower energy costs, rising raw material prices, and increased demand. Market participants noted that Hastelloy raw material prices increased dramatically in January, with chrome ore and ferrochrome prices rising significantly. While other raw material prices continued to rise in the following months, Molybdenum prices skyrocketed due to scarcity. In February, several European plants announced that they would restart furnaces, leading to an expected increase in raw material consumption by the end of the quarter. Suppliers attempted to increase alloy prices by emphasizing low inventories and prompt shipment. A severe earthquake in Turkey halted chrome ore shipments, but it did not affect ferrochrome prices, contrary to expectations. Participants in the market noted that the Hastelloy market was generally constrained, leading to premium prices for some brands of material. As a ripple effect, the discussion of Hastelloy C-276 for Ex Werdohl (Germany) settled at USD 49216/MT as a ripple effect.
For the Quarter Ending December 2022
North America
In North America, the Hastelloy prices stagnated in the final quarter of 2022 amidst fluctuating demand outlook and raw material prices. Nickel had a turbulent year following the outbreak of the Russia-Ukraine war in February, a short squeeze in March, and the fragmentation of physical nickel forms due to the rapid rise of class 2 and intermediate products. However, the macroeconomic-driven broader economic downturn has delayed the return of absolute stability. The LME decided to maintain the status quo in mid-Q4. Hastelloy producers claim that changes in alloy surcharges and mill raw material costs will be the primary factors influencing Hastelloy prices in 2022. As input demand fell and materials became more readily available at suppliers, inflationary pressures were relieved even further. As a result, Hastelloy C-276 prices for Ex Florida (USA) were fixed in December at USD 135070/MT.
Asia Pacific
Towards the closure of Q4, the Hastelloy prices edged downward in the Chinese market amid fluctuating raw material Nickel costs and demand dynamics. According to market participants, demand for Hastelloy increased in October due to frequent positive developments in the new energy industry chain. The profit margin on stainless steel increased, causing the steel plant to maintain a high production schedule. Furthermore, demand support continued to deteriorate, implying that ferronickel had more room to fall. Production scheduling increased again in November, bucking the trend and boosting nickel demand. As the market entered the off-season, the market's potential negative effects became apparent. Molybdenum prices in China reached an all-time high at the end of 2022, and the price continues to rise due to rising demand and tighter supply caused by the Russia-Ukraine war and China's production cuts. According to market participants, the molybdenum price in China has been high, and Hastelloy prices are likely to rise again in February due to difficult procurement. As a result, the Hastelloy C-276 price discussions for Ex Shanghai (China) settled at USD 42490/MT.
Europe
In the fourth Quarter of 2022, the Hastelloy prices showcased an upward trend in the German market amidst fluctuating demand outlook and limited product availability. According to market participants, nickel prices have been trading sideways in recent months as volumes have fallen to record lows. Nickel volume remained historically low in mid-Q4, while nickel prices remained within their short-term range. Participants in the market noted that strong Chinese demand and a narrow spread between oxide and alloy in Europe could limit any short-term falls. As a result, the Hastelloy C-276 discussion for Ex Werdohl settled at USD 47230/MT.
For the Quarter Ending September 2022
North America
Hastelloy prices in the US market rose in the third quarter of 2022, despite a subdued demand outlook, worsening financial conditions, and higher costs. Buyers believe that supply grows faster than demand, and Hastelloy prices were fallen and then stabilized. The problem with adding new capacity was that it expands at a rate two to three times faster than demand. Maintenance outages were unlikely to be enough to compensate for weak demand, while continuously falling import prices may compensate for lower domestic supply in the coming months. The shipping and ship supply industries have been plagued for months by unprecedented port congestion, freight rates, and crude oil prices. Transit times and prices remained significantly higher than pre-pandemic levels, further impacting commodity prices and overall market conditions. According to market participants, the domestic market drove the increase in total new orders, as new export orders were contracted for the second month. Therefore, the Hastelloy C-276 and Hastelloy B-3 prices for Ex Florida (USA) settled at USD 135300/MT and USD 287650/MT.
Asia Pacific
During the third quarter of 2022, Hastelloy prices increased in the Asian market due to the robust downstream demand and soaring raw material costs. According to market participants, rising production and fears of a global recession amid rising inflation kept the market under pressure. However, as inflationary cost pressures eased slightly, firms struggled to maintain margins, contributing to a softer price rise. Participants also mentioned significant strain from food, fuel, input, labor, retail, and transportation costs. Furthermore, buyers predicted that India's coking coal imports were begun to pick up steam in August, as the country's domestic steel demand is expected to improve post-monsoon, i.e., in October. In addition, steel mills that were shut down for maintenance will reopen, increasing the demand for coking coal. Thus, the discussions of Hastelloy C-276 and Hastelloy B-2 prices for Ex Shanghai (China) settled at USD 44740/MT and USD 47180/MT.
Europe
Hastelloy prices in the European market witnessed an unprecedented surge in the third quarter of 2022 due to strong demand amid a material shortage. According to manufacturers, despite seasonal lower consumer activity, ongoing macroeconomic uncertainty, and rising production costs, Hastelloy production was being reduced. Most German manufacturers have reduced or suspended production due to a bleak demand outlook. Weak demand and an overabundance of imported alloy shipped at the start of the year contributed to a further drop in European Hastelloy demand. Furthermore, the sharp increase in electricity prices has constrained European producers, with steady convergent cost and selling price curves. However, European buyers look to the Japanese market for additional quotations to meet their demand. The Slovak OFZ has been completely shut down since August. Elkem, a Norwegian, went a week without working at the end of August. Thus, the Hastelloy C-276 and Hastelloy B-2 prices for Ex Werdohl (Germany) settled at USD 45630/MT and USD 83550/MT.
For the Quarter Ending June 2022
North America
Hastelloy prices witnessed an upswing trend in the USA during the second quarter of 2022, primarily due to the Russia-Ukraine war and its aftermath. Manufacturers were upbeat about the production outcome, but concerns about rising geopolitical tensions, supply chain chaos, and rising inflationary pressures pushed confidence to its lowest level in six months. Prolonged delivery times, severe raw material and capacity shortages on the supplier side, and a softer decline in seller performance, on the other hand, resulted in steep increases in cost burdens and selling prices. Meanwhile, companies consistently hire new employees to relieve capacity pressures as backlogs have gradually increased since February 2021. According to market participants, manufacturing activity in the United States has abruptly decreased as the Federal Reserve tightened monetary policy to combat inflation. Due to the ripple effect, Hastelloy C-276 and Hastelloy B-3 prices for Ex Florida settled at USD 110230/MT and USD 330690/MT, respectively.
Asia Pacific
Hastelloy prices fell in China in the second quarter of 2022 due to yuan depreciation pressure. Due to supply depletion and rising raw material costs, Hastelloy prices skyrocketed in April. Due to tight supply and demand for molybdenum concentrates in China and increased market buying interest, molybdenum prices in China skyrocketed in the first half of April. Furthermore, most mills ceased operations due to a lack of imported nickel-based raw materials, high costs amid high LME nickel prices, limited transportation activity during the pandemic crisis, and a backlog of finished products at mills. According to market participants, currency depreciation pressure on the yuan is intense, and an inflection point is likely when China's manufacturing industry returns to normal. The Ukraine war's economic impact and expectations that the European Central Bank will raise interest rates more slowly than the Fed have weighed on the yuan. On the other hand, normalizing the inflation rate may take at least the third quarter. As a ripple effect, the Hastelloy B-2 prices for Ex Shanghai (China) settled at USD 48650/MT.
MEA
The Hastelloy prices in the United Arab Emirates witnessed a spiraling trend in the second quarter of 2022, primarily due to the stable demand from the end-users sectors amidst the heightened economic uncertainty and the sharply rising raw material prices. As per market participants, the aftermath effect of war on raw materials will take time to decrease the inflationary pressure and cost-push up. However, the firms are struggling to keep up with demand, with work backlogs increasing sharply over the past few months. Furthermore, inflationary pressures on business costs increased. Midway through the second quarter, companies noted a solid but slower increase in input purchases. The slowing of purchasing growth can be attributed partly to firms drawing down inventories rather than purchasing new materials due to increased caution about spending. Purchase stocks increased marginally in May and June. As a ripple effect, Hastelloy C-276 and Hastelloy B-2 prices for Ex Dubai (United Arab Emirates) settled at USD 45180/MT and USD 82620/MT.
For the Quarter Ending March 2022
North America
In the US market, the Hastelloy prices witnessed an inclining trend owing to the limited availability of the quotations and soaring raw material prices in the regional market amid the Russia-Ukraine war. Amidst this, the rising prices of fuel and energy, raw materials, and limited transportation due to port congestion further fuelled the uptick trend of the Hastelloy. As per market participants, the resurgence of COVID in China has two-folded the impact on the inflation rate. The rising cost pressure and stretched supply chain further prompted manufacturers to pass the surging costs over to consumers. As a ripple effect, robust demand and an increasing inflationary rate forced buyers to purchase the quotations of Hastelloy at a higher rate.
Asia Pacific
The Hastelloy C-276 in the Asian market has witnessed bullish market sentiments since the beginning of Q1. The persistently skyrocketing prices of Hastelloy C-276 were majorly backed by the soaring costs of raw materials such as Chromium, nickel, and molybdenum. The war in Eastern Europe pushed up energy prices and the price of Chromium. China's strict environmental protection policies to reduce carbon emissions impact Chinese ferrochromium production. The lunar new year holidays and the restrictions imposed due to the winter Olympics kept the market dynamics bullish throughout the Asia-Pacific region. Therefore, the demand outlook remains healthy against the pressurized production in India. Furthermore, supply chain disruption in Canada due to strikes, flooding in Russian mines, COVID restrictions, and the global energy crisis has resulted in a surge in Hastelloy C-276 prices. Hastelloy C276 Ex Mumbai prices in India settled at INR 4617450/MT in March 2022.
Europe
During the Q1 of 2022, the Hastelloy prices witnessed an inclining trend owing to inflation over raw material costs amidst the Russian-Ukrainian war. As per market participants, the Russia-Ukraine conflict has caused market panic about supply shortages, resulting in dramatic price increases for iron ore and coking coal. Increasing procurement risk, financial support constraints, non-accessibility due to port congestion, growing uncertainty about availability in the regional market, and rising safety and security concerns are among the significant factors driving sentiments in commodity markets worldwide. As a ripple effect, the Russia-Ukraine conflict, and its aftermath, particularly on raw material and logistics, is impacting supply and demand-side movements.
