By Paul Ploumis 24 Aug 2015 Last updated at 03:57:08 GMT
Outokumpu has decided to lower the European alloy surcharges on stainless steel products for September.
CANTERBURY (Scrap Monster): The Finland-based Outokumpu has decided to lower the alloy surcharges on stainless steel products for September delivery in the Europe. The surcharges on 300-series and 400-series stainless steel products will be cut drastically.
As per reports, Outokumpu has lowered its alloy surcharge for 304 grades stainless for September by €84/ton from the month ago. After adjustments, the surcharges will average at €1,082/ton for the month. This is the lowest level since April last year. The surcharge for the product during August was €1,166/ton. Also, its alloy surcharges for 316 grades will be cut by €126/ton to €1,481/ton from €1,607/ton. Meantime, the company also announced that the surcharge for 430 grades was down by € 16/ton to €459/ton during August this year.
The announcement by the continent’s largest producer suggests that other producers are likely to follow suit. The reduction in surcharges is mainly on account of continuing weakness in nickel and molybdenum prices. Nickel prices on the LME had breached the $10,000/mt level during the month to hit a six-year low. Also, molybdenum oxide prices had touched 11-year lows in July, falling below $6 per lb, and have not recovered much from those levels.