Stainless steel pipe, fittings & flanges report: February 2017
The closing weeks of 2016 have proven to be the beginning of a steady trend regarding demand for stainless steel PVF. Following an often dismal and erratic year, December’s rebound offered signs of hope as the industry prepared to enter the fog of uncertainty surrounding 2017. Cautious optimism is moving closer toward confidence as inventory levels tighten to the point of limited shortages. Fueled by expectations of continued gradual growth in 2017, mills, master distributors and manufacturers are responding to increased demand.
The final quarter of 2016 witnessed pricing stability while also marking the beginning of gradual price increases. Significant increases associated with the cost of raw materials will continue to drive market pricing in a positive direction. Since its low in October 2016, chromium has demanded a greater than 70% increase. Molybdenum began to see increases in April 2016, and following a year of continuous pricing adjustments, it ultimately stabilized around 30% in the positive entering 2017. Stainless steel’s most significant pricing variable, nickel, continues to fluctuate as international environmental and political concerns inject uncertainty into both short- and long-term forecasts.