[SMM Stainless Steel Flash] European Stainless Prices Hit 18-Month High Amid Rising Costs

The United States currently operates no domestic nickel smelters, leaving North America entirely reliant on just two remaining pyrometallurgical facilities in Canada. Compounding this critical supply chain vulnerability, a recent report by the Carnegie Endowment for International Peace projects that the US will face a massive annual nickel deficit of approximately 741,987 tonnes by 2035. To address this severe shortfall, awaruite (a naturally occurring nickel-iron alloy) is emerging as a strategic solution. Because awaruite concentrate can bypass traditional smelting and be directly converted into nickel sulfate, it is favorably positioned to qualify for the US Section 45X Advanced Manufacturing Production Credit, helping to secure domestic defense and EV battery supply chains.

According to industry reports, the Pipestone XL project in Newfoundland, Canada, is advancing its awaruite (Ni₃Fe) nickel-cobalt deposit to supply the North American defense and energy storage sectors. Awaruite, a naturally occurring, sulfur-free magnetic alloy containing approximately 77% nickel, enables the production of a high-grade ~60% nickel concentrate through simple magnetic separation and flotation. This unique metallurgical profile completely bypasses carbon-intensive pyrometallurgical smelting and early hydrometallurgical stages like high-pressure acid leaching (HPAL).

Ferroglobe’s South African unit has warned it may halt its remaining furnace operations unless it receives electricity tariff relief by Wednesday. The company, which produces ferrosilicon crucial for steel and stainless steel production, cited a 900% surge in electricity prices since 2007, which now accounts for over half of its total production costs. With an impending 9% Eskom tariff hike, continued operations are deemed financially unviable. Industry leaders highlighted a growing disparity: while government tariff relief talks have prioritized ferrochrome producers, other alloy smelters are left exposed. If a workable tariff (estimated at 62c/kWh) is not granted, Ferroglobe will initiate widespread retrenchments in early April and may shift production entirely out of the country.