LONDON (Scrap Monster): According to Austria-based Steel & Metals Market Research GmbH, the huge rally in Nickel prices has not only benefited mining companies, but also stainless steel makers in Europe. The sale of stainless steel has surged as customers tend to stock up in order to avoid higher surcharges.
Nickel prices have surged nearly 41% year-to-date, mainly on account of Indonesian ban on ore exports. Steel & Metals Market Research notes that the biggest winners are nickel producers. But the second biggest gainers are stainless steel makers. The surging nickel prices have triggered strong speculative buying. As far as stainless steel mills are concerned, any increase in expenses is easily covered by raising surcharges.
Reportedly, Finnish Outokumpu saw 9% jump in stainless steel deliveries during the fourth quarter. The German ThyssenKrupp AG also reported higher sales during the period. The nickel price is said to have helped the company’s AST stainless steel unit.
The stainless steel orders are expected to rise significantly over the next few months. The speculative buying is likely to drive the European demand by 10% in 2014.