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Analysts expect a decline in stainless steel prices

Rolled metal market analysts expect another fall in prices for stainless steel and predict the preservation of the same dynamics in the next month. According to experts, this trend is due to noticeable decrease in quotations of nickel, which will result in adjustments to the manufacturers surcharges alloys containing this metal.

According to the results of trades on July 23 at the LME nickel prices have fallen to the level of the next day «record» for three years — 15 615 USD per tonne. Recall that below this mark value of the metal dropped last autumn of 2008, but by mid-summer of 2009, «dive» the rise of the schedule changed, and by August, nickel was trading at a price above $ 19 thousand.

In July last year the average cost of Ni on the London Stock Exchange was $ 23 890 per tonne, and in 2010 — $ 19 618. The average price of the metal in July this year so far is 16,272 USD per kilo in 1000 (almost a third less than last year performance and 17% less than the results of 2010). However, if the drop in prices will continue with the same dynamics (more than $ 600 per week), the data of the average cost of nickel can beat the record for the failure in July for the last three years (figures for the year 2009, amounting to 16,068 dollars / ton).

Some of metal manufacturers have already managed to respond to another peak of nickel. However, despite the relatively low premiums held for quite a long period, sales of stainless products «poor» — commented on the situation of the market operators.

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