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.
