US stainless steel prices continue to rise

Outokumpu's US unit in Calvert tried to raise its base price this month
However, this proved largely unsuccessful and prices eventually rose in line with published alloy premiums.

The value of 304 and 316 flat-rolled deals will rise minimally in May, but are likely to jump in June following the recent rise in nickel prices.

The extent of the increase will depend on whether nickel prices remain elevated during the reporting period and whether US smelters offer additional discounts to base prices to offset rising raw material costs.

Buyers are increasingly concerned that any rise in prices in June could be quickly followed by a decline, especially as the impact of the LME ban on Russian nickel fades.

In March, the ISM manufacturing PMI rose to 50.3, indicating the first increase in manufacturing activity since September 2022. The majority of MEPS respondents reported no change in end-user demand this month. However, several large distributors have seen an increase in orders from smaller service centers.

Orders to domestic mills remain weak, and respondents suggest North American Sustainable is slow to fill May orders. Some customers even reported receiving deliveries ahead of schedule.

Limited tonnes of material are shipped to Europe to meet the needs of Acerinox Europa customers. Workers at the Acerinox plant in Cadiz have been on indefinite strike since February 5.

Market participants say Outokumpu is now offering July products for new orders. However, this is not due to an increase in orders, but in response to ongoing production problems at the Calvert site.

Customers are encouraged to place orders in advance to ensure efficient production planning. Some customers report being offered prices below the current discount level. Many are receiving their existing orders six to seven weeks late.