Stainless Prices Continue To Surge; Relief Seen In 2007
Nickel prices as of early October hovered around $30,000 per ton. This suggests that alloy surcharges on stainless steel will remain at their current unprecedented high levels for at least two months, according to MEPS, a U.K.-based firm that tracks global steel markets.
Alloy surcharges have risen by more than 150% since January. The London Metals Exchange (LME) price of nickel has doubled since March. Controversy exists over whether the surge is due to a supply-demand imbalance or speculation by financial investors. MEPS believes it's due to a structural shortage based on low pricing of LME nickel stocks.