News & Trends Back
Global stainless steel prices falling on weak demand – 07 Nov, 2008
According to Global Insight economists, plunging nickel prices and weakening demand are combining to send stainless steel prices down further by the end of 2008. They and other economists and market analysts also generally reject the view of mills and service centers that the descent may be nearing an end and look for another 3% decline in the annual average price for cold rolled sheet in 2009 after a 2% drop this year.

Global Insight projects that the 2008 annual average price of Type 304 sheet will slide to USD 4,156 per ton this year from USD 4,863 in 2007, a drop of almost 15%. They project the 2009 price at USD 4,027.

Purchasingdata.com projects a 2008 annual average of USD 4,120 and a 2009 annual price of USD 3,996. The monthly nickel price average peaked at USD 14.16 per pound in March on the London Metal Exchange. However, through October, the world nickel price has dropped 39% when compared with all of 2007 and is selling this week on the spot market at USD 5.36 and USD 5.44 for delivery in three months.

At the start of the year, GFMS Metals Consulting had expected a rebound in stainless steel markets by midsummer. This has, of course, not happened and instead the global stainless steel sector has worsened. So, the International Nickel Study Group’s October market review concludes that any recovery in stainless steel production and primary nickel demand is not anticipated for until well into 2009. – Steel Prices China