July 2 2012 – Prime nickel is featured at $7.13 per pound in this weeks prices from Iron Mike Enterprises | 900 Wilshire Drive, Suite 202 | Troy, MI 48084 | 877-476-6645
|Nickel Alloy Scrap Metal||Current Mill Price||Market Price|
|Prime Nickel||$7.13 lb||$7.10 lb|
|Scrap Ni Solids (clean)||$7.00 lb||$6.50 lb|
|Scrap 304 (18-8)||$0.72 lb||$0.61 lb|
|Scrap 304 (18-8) Turnings||$0.64 lb||$0.56 lb|
|Scrap 316 (16-10)||$1.04 lb||$0.95 lb|
|Scrap 316 (16-10) Turnings||$1.01 lb||$0.89 lb|
|Scrap 409-410 Solids||$0.20 lb||$0.13 lb|
|Scrap Inconel 600||$5.10 lb||$4.90 lb|
|Scrap Inconel 625||$6.40 lb||$6.10 lb|
|Scrap Inconel 718||$5.68 lb||$5.45 lb|
|Scrap Cobalt-Nickel||$5.10 lb||$4.80 lb|
|Scrap Carbide Insert||$12.00 lb||$11.00 lb|
|Scrap Carbide Drills and Reamers (no steel)||$11.50 lb||$10.50 lb|
|Scrap Columbium||$22/$60 lb||$20/$55 lb|
|Scrap Hastoloy C (Air melt)||$6.20 lb||$6.00 lb|
|Scrap Hastoloy X (Air melt)||$4.48 lb||$4.22 lb|
|Scrap Molybdenum||$14.00 lb||$13.20 lb|
|Scrap Niobium||$22/$45 lb||$20/$40 lb|
|Scrap R Monel||$4.78 lb||$4.49 lb|
|Scrap Tantalum (Air-Vac melt)||$140 to $210 lb||Call|
|Scrap Tungsten 99.9%||$22.20 lb||$20.90 lb|
|Scrap Tungston Carbide||$12.00 lb||$11.00 lb|
|Scrap Waspaloy||$3,80 lb||$3.50 lb|
|Scrap T-1||$2.30 lb||$2.00 lb|
|Scrap T-15||$2.25 lb||$1.99 lb|
|Scrap M-1||$0.93 lb||$0.82 lb|
|Scrap M-2||$1.19 lb||$0.93 lb|
|Scrap M-42||$1.48 lb||$1.30 lb|
|Scrap H-13||$0.26 lb||$0.18 lb|
|Scrap Titanium 6-4 Clips||$ 3.48 lb||$ 3.21 lb|
In other news:
Nickel Price Decreases Push Stainless Steel Values Lower
Stainless steel transaction prices are heavily influenced by raw material values. Producers in the Far East amend effective prices to reflect input costs, while mills in Europe and North America issue monthly alloy surcharges, which are based on published prices for the main ingredients of the product.
The effect of these surcharges is substantial. For example, while the basis price for type 304 cold rolled coil in Germany has moved within a band of only €50 per tonne, between January and June this year, the difference between the high and low applicable surcharges for that grade, during the same period, is €223 per tonne. Furthermore, the June alloy extra, at €1418 per tonne, is 59 percent of the transaction value.
By far the biggest contributor to these input costs is nickel. Even at the current LME figure, less than US$17,000 per tonne, which is very low in terms of recent history, the value of nickel units in grade 304 stainless steel represents over 50 percent of the transaction price of the product.
Consequently, participants in the stainless steel market should take notice of factors likely to affect the price of nickel in the short-to-medium term. A surplus in the supply-demand balance is forecast for 2012 and 2013. Growth in consumption by stainless steel makers will be restrained by moderate demand, while industry consolidation, such as the proposed merger between Outokumpu and Inoxum, will lead to the closure of some production facilities.
Furthermore, as a traded commodity, nickel prices are affected by the actions of traders and investors who are not connected to any physical operations related to the production or consumption of the metal. While commodities are generally considered a safe long-term bet, many traders earn their living by reacting to short-term fluctuations in the markets. Commodity prices tend to react negatively to periods of intense market stress, such as the present eurozone crisis. Moreover, some observers believe the so-called “commodities supercycle” could be approaching its end, as there are signs of slowing demand growth from China.
However, the nickel miners will attempt to redress the balance by delaying or reducing the scale of new projects, or even cutting existing operations. Meanwhile, measures by China, the world’s largest nickel producer, to comply with environmental guidelines, could lead to reduced output there. Assuming global economies recover sufficiently to allow a resumption of industrial growth, longer term nickel values would then take on a brighter outlook.