Last week, American Metal Market published an important article regarding stainless prices in the month of February. We\u2019d like to inform our trusted customers and blog readers of specific raw material price increases:<\/p>\n
News Summary
\nThe article states that large mills and distributors are increasing stainless steel prices in advance of stainless surcharges, which begin in March. Since manufacturers have been aware of these upcoming surcharges, many \u201cstocked up\u201d in January. Distributors fear they might run out of stainless inventories completely if they do not increase prices to allow for this surcharge.<\/p>\n
Surcharge Expectations
\nSources say the March surcharge on Type 304 stainless could increase by between 10 and 15 cents (up from 73 cents per pound in February), while Type 316 stainless could go up to $1.25 per pound from $1.06. Additionally, distributors have increased flat-rolled stainless stock prices by around 5 cents in past weeks (since January 28). When surcharges increase, distributors raise prices to cover their own bottom line.<\/p>\n
Effect on Roller Die, competitors
\nMany manufacturers who purchase stainless are doing so conservatively, and not in a way that would deplete supplies by March (as the article first suggests). The article states that large purchases have been mainly put on hold as prices rise, and manufacturers are buying in smaller quantities. States a southern service center manager: \u201cReal demand is still a little wishy-washy.\u201d<\/p>\n