Activity in the stainless steel market in Europe is slowing due to the background effect of declines in scrap and nickel prices. Mills are forecasting alloy surcharges for March to fall by around €100/tonne ($107.9/t) compared to February. This is due to the sharp fall in the nickel price and recent fluctuations which saw prices dipping below €9,000/t, Kallanish hears from market sources.

After rising in December and January, alloy surcharges in Europe are again increasing for February by around €100/t on January to €1,430/t. For this month prices of stainless finished products will therefore remain elevated, supported by high alloy surcharges and European mills’ increases in base prices for the first quarter. Things will change substantially in March unless nickel prices recover and remain steady at the higher levels seen in the second half of 2016, sources suggest.

Stainless hot rolled coil prices on the spot market are at an average of €2,250/t delivered in Europe, while cold rolled coils are slightly higher at €2,400/t delivered. Orders from the retail sector however are slowing amidst market uncertainty which is forecast to last for "... the next couple of weeks."