Page 39 from: June / July 2013

39June/July 2013

Nickel & Stainless

rounding Europe’s quarterly bench-
mark price, with consumers envisioning
monthly price arrangements, it should
not be forgotten that South Africa is
the most important supplier, account-
ing for more than 60% of European
demand. Unrest and strikes in South
Africa could alter market conditions
dramatically.

Europe
The nickel market in Europe is cur-
rently lacklustre. In Germany, nickel
cathodes have also been in the dol-
drums and prices recently stood at
around US$ 14 550 per tonne. Alloyed
scrap prices have been mirroring those
of primary material, with V2A (304)
scrap fetching US$ 1519 per tonne and
the V4A (316) grade yielding
US$ 2100.

China and elsewhere
in Asia
The government of India has confirmed
an increase in the basic customs duty
on stainless steel scrap imports from
0% to 2.5%. The Metal Recycling Asso-
ciation of India has expressed its disap-
pointment over this move and has told
government officials that it will hinder
the use of metal scrap. Meanwhile, the

European Commission has imposed
provisional anti-dumping and anti-
subsidy duties of up to 32.1% on stain-
less steel drawn wire from India after
complaints filed by Eurofer last year.
Compared with the final quarter of
2012, China’s crude stainless steel
output fell 1.7% in January-March this
year to around 4.4 million tonnes,
reveals the Stainless Steel Council of
the China Special Steel Enterprises
Association. From the year-on-year
perspective, however, production was
more than 9% higher.

Compared with 2012, Chinese imports
of refined nickel and its alloys surged
64% to 14 825 tonnes in April, contrib-
uting to a year-on-year gain in the open-
ing four months of this year of more
than 30% to 63 649 tonnes. In contrast,
exports slid almost 21% in this year’s
January-April period to 10 027 tonnes.
Meanwhile, the nickel price on the
Shanghai spot market occupied a range
equivalent to US$ 17 047 and
US$ 17 618 per tonne in May. Low vol-
umes have been traded on the spot
market of late and demand has remained

generally lukewarm, with most traders
and smelters declining to stock up.

North America
Outokumpu Stainless USA and other
domestic producers lowered their steel
price surcharges on most grades for
June. With most consumers suffering
from low order books, US stainless
steel scrap processors and dealers have
been forced into further price cuts.
For most of 2013, US stainless mills
have been struggling to consolidate
price increases within the domestic
market against a backdrop of lacklustre
demand. Richard Harshman, who is
chairman, president and ceo of Allegh-
eny Technologies, reportedly told
‘American Metal Market’ in May that
early-year price increases had been
eroded to the extent that values were
now back at end-2012 levels, leaving
producers with no scope to make an
acceptable return on capital employed.
Speaking at the International Stainless
Steel Forum’s annual conference in
New Orleans, Steel & Metals Market
Research’s managing director Markus
Moll acknowledged the addition of
Outokumpu’s plant at Calvert in Ala-
bama but also predicted the closure of
‘at least two meltshops’ in the USA.

Minor metals
According to Chinese ferro-tungsten exporters, they have
been receiving more inquiries – possibly because of report-
ed production disruptions at the Youngsun plant in Viet-
nam. Ferro-tungsten prices have climbed to US$ 47.50-
48.50 per kg W, while ferro-titanium has left its lows
behind and has firmed up to US$ 6.20-6.30 per kg Ti
(maximum 4.5% Al). Ferro-vanadium has been stable for
a number of weeks at US$ 27.60-28.00 per kg V.
Given low activity levels on the LME, molybdenum has
been hovering around US$ 23 000-24 000 per tonne.
Cobalt has been recording a brisk turnover after concen-
trate tightness in China resulted in higher domestic
prices. At the time of writing, the quotation has moved
up to US$ 29 400-30 400 per tonne. This rising trend has
also been fuelled by rumours that the Democratic Repub-
lic of Congo will introduce a total ban on exports of con-
centrates.

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