MEPS conceded that nickel prices exceeded its
expectations in rising to new highs during February. Although nickel prices may
remain elevated in the short term, MEPS expected the high prices “to take their
toll on the stainless steel industry with stainless demand expected to slow
over the coming months. This could help to alleviate the current nickel supply
shortages and bring prices down as the year progresses.”
In the longer term, MEPS forecasted a decline in stainless selling values as
nickel prices reduce as demand slows and de-stocking continues. Both basis
figures and alloy surcharges should begin to decline into quarter four of this
year, said MEPS.