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European stainless additional charges up in February despite nickel rate decrease

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Hicks Timm
Monthly alloy surcharges on austenitic qualities of stainless-steel flat-rolled items in Europe are set to increase once more in February as solid ferrochrome costs have offset the recent weakness in nickel costs, first mill statements indicated Monday.

Finland's Outokumpu, the continent's largest manufacturer, set its alloy modification element for kind 304 (4301) level products at Eur1,434/ mt ($1,540/ mt) for February, up Eur104/mt from January. The February number is the highest possible because October 2014.

Having actually spiked above the $12,000/ mt degree for the first time because July 2015 in mid-November last year, dollar-denominated nickel costs on the London Steel Exchange fell back to close the year at two-month lows as well as rough profession until now in 2017 has seen the marketplace probe repetitively below $10,000/ mt.

The LME nickel money negotiation cost has actually averaged $10,126/ mt for January to day, down 8% from $11,010/ mt for December.

coatings additives suppliers for molybdenum-bearing kind 316 (4401) flat items was set at a 27-month high of Eur1,947/ mt for February, up from Eur1,873/ mt in January.

From a low of $6.40-$6.55/ pound, basis S&P Global Platts evaluations, in mid-December, place molybdenum oxide rates pushed back above $7/lb in early January to hit four-month highs at $7.30-$7.40/ pound by the center of the month.

On the other hand, Outokumpu's additional charge for nickel-free kind 430 level products was set at Eur810/mt, up Eur186 from January and striking a document high in Platts' records, which go back to January 2007.


The European benchmark ferrochrome rate discussed in between manufacturers and also steel mills was settled at 165 cents/lb for the first quarter of 2017, up 55 cents/lb or 50% from the previous quarter, and up 79% from 92 cents lb in Q1 in 2014.

Area ferrochrome costs were likewise increasing at the end of last year, with Platts' for high-carbon 65% FeCr peaking at an eight-year high of $1.25-$1.50/ pound DDP Northwest Europe in mid-December, before relieving back to $1.20-$1.24/ pound presently.
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