While the carbon steel market tends to grab most headlines with regards to higher prices and tight availability, it’s not the only industrial metal experiencing these conditions.
What is the Price of Stainless Steel?
Like with other metals, the price of stainless steel is driven largely by the price and availability of the commodities that make up the grade. In the case of stainless steel, that includes nickel and chrome.
That price impact is felt by you in form of the stainless steel surcharges. These are additional charges added to the base price per pound of an alloy typically vary by mill. Typically, the base price for each is established using the following:
- Alloy
- Production Cost
- Yield Factor
- Supply-demand Fundamentals
For December, the stainless steel surcharges are as follows:
304 $0.92290.9539
316 $1.3903
430 $0.3346
The price of stainless steel is influenced heavily by the price of underlying commodities. One of the most influential is nickel.
What is the Price of Nickel?
Nickel prices remain under pressure as we near the end of 2023.
Throughout 2023, the nickel market has experienced notable instability, largely due to a consistent uptick in supply, particularly stemming from Indonesia. This influx of supply has resulted in substantial surpluses, with estimations indicating a potential addition of 25-30% to the global nickel market within the next year.
Unless there's a slowdown in mining operations in Indonesia, Webb anticipates this surplus to persist, exerting downward pressure on nickel prices. Consequently, this downward trend is likely to lead to reduced surcharges on stainless steel. Traders have been adopting a more pessimistic stance, foreseeing further price declines owing to these underlying supply dynamics.
What is the Price of Chrome?
Chrome is short for chromium, which is the primary alloying element in all stainless steels. Stainless steel grades contain anywhere from 16% to 18% chromium.
The price of chrome is anticipated to be up 15% quarter-over-quarter.
What is the Price of Molybdenum?
Moly is a primary alloying element in 316, contributing to its highly corrosion-resistant properties.
Historically, nickel has had the biggest impact on these surcharges. But chrome has a certain impact as well, as described by Nick Webb, Ryerson’s director of risk management, commodities hedging, below:But another to consider is molybdenum. This is used as a hardening agent in stainless steel 316 to improve corrosion resistance.
As the price of molybdenum goes up, it impacts that 316 stainless steel surcharge.
What is the Current Price of Stainless Steel?
For a monthly update on the price of stainless steel, as well as that of all other metals, be sure to sign up for Cup o' Joe with Nick Webb.
Ready to Purchase Stainless Steel? Browse our inventory of stainless steel products:
/Metal-supplier/What-customer-service-options-can-I-expect-online/Stainless-button-blog.ashx?h=100&w=320&hash=AB83191029F5B35F0C81F011730B2FD9)
/Im-Ready-to-Buy.ashx)
.ashx?h=300&w=940&hash=A4A74EB362151E6A1B78284B1B5838B8)
.ashx?h=300&w=940&hash=357B3E0577C9475EB1306A911B929DAF)