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The Monthly Stainless Metal Index (MMI) fell 1.9% for this month’s reading.
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Increase in base price and supplement
North American Stainless Steel (NAS) increased by 304, 304L and 316L effective October 1 by reducing the discount by two points. For 304, that’s an increase of about $ 0.0350 / lb.
NAS increased to 430 and other 200 and 300 series by reducing the discount by three points. Non-430 ferritics will increase by $ 0.04 / lb, which is a total increase in 2021 of $ 0.31 / lb.
In addition, alloy supplements increase in October. NAS October alloy surcharge for the 304 is $ 1.0641 / lb, down $ 0.0038 / lb from September.
American imports
U.S. imports of stainless steel fell 6.7 percent, from a value of $ 343.6 million to $ 320.5 million, according to US Census Bureau data from July to August.
While most forms of stainless steel imports have declined, wire rod imports have almost doubled. Imports jumped 57.6% to a value of $ 4.4 million during the same period.
Stainless steel wire rod is mainly used to make stainless steel wire, which has a wide range of use due to its non-corrosive attribute. Stainless steel wire is used in household appliances in the form of springs and meshes. It is also used in food processing, automotive, aerospace, and medical device products.
Nickel prices fall
The electricity and real estate crisis in China is currently affecting most base metal prices.
LME nickel prices have fallen since mid-September as the crisis escalates, leading to blackouts at stainless steel plants across the country. Weak factory output and the overall decline in durable goods manufacturing are raising concerns about China’s economic growth.
In addition, the demand for nickel is threatened by the real estate crisis in China. Nickel is mainly used in the manufacture of stainless steel, which is widely used in the construction industry.
Nomura Holdings and China International Capital Corp. (CICC) downgraded his estimate of the Chinese growth rate for the whole year at 7.7% against 8.2%. The CICC also expects inflation to increase by at least 9% in 2021 compared to the previous year.
Real metal prices and trends
Allegheny Ludlum 304 stainless steel supplement fell 3.6% month over month to $ 1.07 a pound this month. Meanwhile, the Allegheny Ludlum 316 supplement has dropped to $ 1.57 per pound.
China’s cold-rolled 316 coil jumped 7.9% to $ 4,695 per metric tonne on Oct. 1. Likewise, cold-rolled coil 304 climbed 4.3% to $ 3,424 per metric tonne. Chinese primary nickel fell 5.0% to $ 21,870 per metric tonne.
The three-month LME nickel price continued to decline, falling 4.7% to $ 18,560 per metric tonne.
Indian primary nickel rose 0.4% to $ 19.70 per kilogram.
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