US stainlesss mills trim surcharges on lower Ni costs

US stainless steel producer monthly surcharges for austenitic grades of stainless steel flat-rolled products for March shipments fell as a result of lower LME nickel prices during the reporting period.

North American Stainless, AK Steel, Allegheny Technologies and Outokumpu set stainless 304 surcharges at 56.25-58.75¢/lb, down from the prior-month range of 61.20-63.70¢/lb and the lowest since July last year.

Stainless mills add monthly surcharges to base prices for flat-rolled products sold to service centers and other consumers.

The four producers said four-week averaged nickel prices ended 20 February down by 7.6pc to $5.87/lb, from $6.35/lb a month earlier.

Ferrochrome prices remained at $1.01/lb as all US mills are using the quarterly European benchmark for chromium.

Lower nickel also caused producers to decrease stainless 316 surcharges for March shipments to 81.84-87.81¢/lb from 85.31-87.81¢/lb a month earlier, to the lowest since June 2019 and offsetting an uptick in molybdenum oxide prices.

Four-week average molybdenum oxide prices ended 20 February at $10.49-10.51/lb, up from $9.41/lb a month earlier.

All four producers reported ferrous scrap at $290/gross ton (gt) down $10/gt from the previous month, in line with the drop in domestic US ferrous prices in February.

By Pete J. Stavretis