Despite a slowing in the recent upturn of stainless steel prices, at FrontMet B.V. we believe that sellers will be encouraged by the positive trend displayed during the past twelve months.
Raw material costs are an important factor for this. The LME Nickel price is estimated at US$10600 per ton a gain of more than 27% compared to February 2016. The European quarterly Ferro Chrome contract price is nearly 80% higher than for the same period in 2016. Nickel prices are expected to continue on an upward trajectory. The situation regarding mine closures, in the Philippines, is ever changing but will continue to contribute to supply tightness.
Demand is perceived to be strong, particularly in Europe and North America. Conversely, trade cases against Asian stainless steel producers, in many parts of the world, have resulted in oversupply in the Far East.
Source: scrap register