What's the Price of Stainless Steel?

Similar to other metals, the price of stainless steel is heavily influenced by the cost and availability of its constituent commodities, primarily nickel and chrome.

This cost fluctuation impacts end-users through stainless steel surcharges. These surcharges are additional fees added to the base price per pound of the alloy and can vary depending on the mill. Typically, the base price is established using the following components:

• Alloy
• Production Cost
• Yield Factor
• Supply-demand Fundamentals

Below is a current snapshot of stainless steel surcharges year to date, with the year-ago period highlighted in blue. 

What is the Price of Nickel?

The stainless steel market has experienced a notable resurgence recently, influenced by various factors that have reshaped trade dynamics and market sentiment.

A key factor in this upturn is the evolving landscape of base metals trading, particularly in response to protectionist policies and tariff measures. These changes have introduced a risk premium into the market, causing traders to reassess their positions and strategies.

Moreover, the latest commitment of traders report indicates a shift in sentiment, with the trading community moving from a bearish to a slightly bullish outlook. While this does not signal overwhelming bullishness, it suggests a more nuanced perspective on stainless steel pricing.

Nickel prices have surged over 5% due to unrest in New Caledonia, sparking concerns about supply disruptions from the French territory. The South Pacific archipelago, the world's third-largest producer of nickel for electric vehicle batteries, has been affected by protests over new voting rules. This situation has impacted production from French miner Eramet SA, which is operating at minimal capacity.

Nickel futures rose as much as 5.7%, the largest gain since April, reaching $20,880 per ton on the London Metal Exchange. Other base metals also saw increases, with aluminum and copper rising by 1.1%. This follows previous supply cuts and delays in mine licensing in Indonesia, as well as sanctions on Russian metal, pushing nickel prices back above $20,000 per ton.

What is the Price of Chrome?

Chrome is short for chromium, which is the primary alloying element in all stainless steels. Stainless steel grades contain anywhere from 16% to 18% chromium.

The price of chrome is anticipated to be up 15% quarter-over-quarter.

What is the Price of Molybdenum?

Molybdenum is used as a hardening agent in stainless steel 316 to improve corrosion resistance. As the price of molybdenum goes up, it impacts that 316 stainless steel surcharge.