Nickel price increases trigger stainless steel price rises

After declining to $15,000/mt in August, world nickel prices have started to rise again, pushing up stainless steel prices at the same time. In the past month, nickel prices have increased by about $3000/mt and, as of October 2, nickel prices for cash settlements at the London Metal Exchange (LME) closed the day at $18,840/mt.
 
Many stainless steel producers in Europe and the Far East have increased their list prices recently, and so stainless steel offers to Turkey have also risen. Accordingly, import offers given to Turkey for 304/2B stainless steel cold rolled coil (CRC) of 2 mm thickness are currently standing at about $2,850-3,000/mt CFR Istanbul, up from $2,700/mt CFR Istanbul in August. The upper end of the price range is for orders of new production material, while offers from the Far East to Turkey for ex-stock ready material of premium grade are at $2,850-2,900/mt CFR. In the meantime, European offers to Turkey for second quality 304 series stainless steel CRC are standing at the price level of €2,200/mt CFR.
 
Despite the price increase, market players state that Turkey's stainless steel demand has not showed any significant improvement, but some increase in the market activity has been witnessed.
 
Many European and Far Eastern stainless steel producers, including Acerinox, Aperam, POSCO, YUSCO, Baosteel and TISCO, have increased their prices for orders in September and October, while stainless steel prices are expected to continue rising as long as nickel prices keep moving up.