Page 61 from: March 2014

61March 2014

Nickel & Stainless

270 000 tonnes at the time of writing.
According to leading analyst Heinz H.
Pariser Alloy Metals & Steel Market
Research, the EU-28’s crude stainless
steel production fell 4.2% to 7.147 mil-
lion tonnes in 2013 – the first decline in
five years. Imports from third countries
slumped 31.7% when comparing the
figures for January-October 2013 with
those for the same period in 2012 while
stainless steel scrap export volumes
tumbled 39.9% over the same period.
Market players in Europe have noted
steady high-carbon ferro-chrome
prices. The spot market was largely
active for specialty-grade material
while standard prices have stayed level
week on week as many seek price sup-
port. There has still been speculation
that prices could move higher given
steady demand and rising costs.  
Charge and high carbon ferro-chrome
imports into the EU-28 markets
increased by 19.5% in October last year
when compared with September
whereas import volumes declined by

7.5% in the same period in 2012. These
figures reflect actual conditions for the
European stainless steel industry.
Meanwhile, China’s stainless steel pro-
duction increased to nearly 19 million
tonnes last year and is expected to
account for half of this year’s global
output.

Europe
LME nickel prices exceeded analysts’
expectations at the beginning of the year
and yet it remains to be seen whether
the metal can stand its ground in the
coming weeks. The market for alloyed
scrap remains rather weak. V2A scrap
has been fetching around US$ 1429 per
tonne of late while V4A scrap has been
around US$ 1938. Nickel cathodes have
been commanding some US$ 14 250 per
tonne in Germany. In the Netherlands
too, there have been similar complaints
about the weakness of the scrap market,
with INOX 18/8 nickel scrap attracting
US$ 1374 per tonne and INOX 316
nearer US$ 2337.

China and elsewhere
in Asia
The nickel price on the Shanghai spot
market witnessed a slight increase to
Yuan 94 500 per tonne (US$ 15 491)
after the Chinese New Year holidays fol-
lowing the decision by the Indonesian
government to ban exports of unpro-
cessed minerals, including nickel con-
centrate. Undoubtedly, this was positive
news for a lifeless nickel and stainless
steel market. However, traded volumes
remained low as most players had no
intention of selling given no increase in
market prices. The Shanghai nickel price
subsequently fell to Yuan 93 400 per
tonne (US$ 15 311) on February 24.
According to China’s Customs Office,
the country’s imports of refined nickel
and its alloys suffered a year-on-year
drop of 16.4% in January to 18 253
tonnes while exports declined 10.9%
to just 2005 tonnes.
China produced 18.7 million tonnes of
crude stainless steel last year, says the
Stainless Steel Council of the China
Special Steel Enterprises Association,

for an increase of more than 16% over
the 16.1 million tonnes of 2012. Out-
put of the 200 series climbed more
than 6% to some 5.3 million tonnes;
300 series production jumped more
than 23% year on year to 9.8 million
tonnes; and growth in 400 series out-
put neared 15% to 3.7 million tonnes.
According to the council’s figures,
China’s overall domestic consumption
advanced by 13% to 14.6 million
tonnes while its exports surged to 2.7
million tonnes, which is equivalent to
a year-on-year increase of approaching
590 000 tonnes or 28%.

North America
Over recent weeks, severe winter
weather conditions have continued to
afflict parts of the continent and to
affect movements of scrap both to and
from processors’ facilities. However,

stainless steel mills appear to have
been able to secure the supplies of
scrap necessary to support an improv-
ing if far from spectacular order file.
In Outokumpu’s review of 2013, ceo
Mika Seitovirta states that the com-
pany was burdened last year by ‘weak-
er than expected’ demand for stainless
steel and by ‘the remedy requirement
of the European Commission that dic-
tated the divestiture of the stainless
steel operations in Terni, Italy, and
additional European service centres’.
This requirement tied up resources and
also ‘significantly hampered the ramp-
up of the Calvert stainless steel mill in
Alabama, USA’. He goes on to say that
the ramp-up ‘progressed in line with
expectations’ in the fourth quarter of
2013 and its finalisation would be one
of the company’s ‘clear operational
priorities’ for the current year.

Minor metals

On the European spot market, demand for both ferro-molybdenum and
molybdenum oxide has remained largely flat. Consequently, prices have
been on a steady downward drift, primarily due to oversupply. According to
sources, the cobalt market has been slightly stronger for low-grade and
middle-grade material owing to downstream demand. At the time of writing,
LME cobalt is in the range of US$ 30 500-31 500 per tonne.
The EU ferro-vanadium market has settled down following firm buying
subsequent to the Chinese New Year holidays, with the price declining to
US$ 25.20-25.50 per kg V. Ferro-titanium has left its lows behind and surged
to US$ 6.35-6.55 per kg Ti (maximum 4.5% Al). As buyers are well supplied,
ferro-tungsten prices have held firm at US$ 46-46.50 per kg W and spot
transactions have become less pronounced, according to sources.

RI-2-2014-MA-Nickel&Stainless.indd 61 05-03-14 15:04