US stainless steel producers have increased their March surcharges for austenitic stainless alloys. 304 stainless steel flat surcharges in North America rose to $1.3067 per pound, an 11-year high. This is an increase of more than 45% compared to the figures registered in March 2021. A similar situation arises with molybdenum-containing grades. The markup on the 316 rose 7.3% to $1.8613 a pound.
US steelmaker North American Stainless recently announced a series of base price hikes effective March 1st. This time, the 300 series list price discount is limited to cold rolled grade 301. MEPS North American 304 and 316 base prices are at their highest level since June 2007.
Many buyers complain that they cannot purchase CRC and domestically produced sheet directly from US factories. Some believe this was exacerbated by Allegheny Technologies’ (ATI) announcement in early 2020 that it was pulling out of the commercial quality stainless flat steel industry due to low profitability. A very strong order book allows US producers to prioritize deliveries of the most profitable varieties and sizes. In addition, the factory still has customers distributing products, which limits the amount of material received.
In recent months, Allegheny & Tsingshan Stainless (A&T), the ATI joint venture with China’s Tsingshan, filed its third attempt for a Section 232 exclusion. In recent months, Allegheny & Tsingshan Stainless (A&T), the ATI joint venture with China’s Tsingshan, filed its third attempt for a Section 232 exclusion. В последние месяцы Allegheny & Tsingshan Stainless (A&T), совместное предприятие ATI с китайской Tsingshan, предприняло третью попытку исключения по Разделу 232. In recent months, Allegheny & Tsingshan Stainless (A&T), ATI’s joint venture with China’s Tsingshan, made a third attempt at a Section 232 exemption.最近几个月，ATI 与中国青山的合资企业Allegheny & Tsingshan Stainless (A&T) 第三次尝试排除第232 条款。 Allegheny & Tsingshan Stainless (A&T) 第三次尝试排除第232 条款。 В последние месяцы Allegheny & Tsingshan Stainless (A&T), совместное предприятие ATI с китайской Tsingshan, предприняло третью попытку исключить Раздел 232. In recent months, Allegheny & Tsingshan Stainless (A&T), ATI’s joint venture with China’s Tsingshan, has made a third attempt to eliminate Section 232. The application concerns low residue tropical imports from Indonesia. The raw material is required at a cold rolling mill in Midland, Pennsylvania. Previous attempts by A&T to acquire tariff-free Indonesian slab, for conversion, were rejected by the authorities. Previous attempts by A&T to acquire tariff-free Indonesian slab, for conversion, were rejected by the authorities. Предыдущие попытки A&T приобрести беспошлинные индонезийские плиты для переработки были отклонены властями. Previous attempts by A&T to purchase duty-free Indonesian stoves for recycling have been rejected by the authorities. A&T 此前曾尝试获得免税的印尼板坯进行转换，但遭到当局拒绝。 A&T A&T ранее пыталась получить беспошлинно индонезийские плиты для переработки, но власти отказали ей в этом. A&T had previously tried to get duty-free Indonesian stoves for recycling, but was denied by the authorities.
American Outokumpu Stainless, North American Stainless and Cleveland Cliffs Steel have objected to the new request. They are mainly tropical plants based on this specification that can be produced and supplied locally. Some market participants said that despite the current difficulties in purchasing domestic CRC and sheet, this is unlikely to be ruled out.
While the majority of shareholders continue to report that the supply of cold rolled material remains limited, some note a gradual easing. In its objection to A&T’s exclusion request, Outokumpu states, In its objection to A&T’s exclusion request, Outokumpu states, В своем возражении против запроса A&T об исключении Outokumpu заявляет: In its objection to A&T’s request for an exception, Outokumpu states:奥托昆普在反对A&T 的排除请求时表示，奥托昆普在反对A&T 的排除请求时表示， Возражая против запроса A&T об исключении, Outokumpu заявила: Objecting to A&T’s request for an exception, Outokumpu stated:
A recent inventory review of MSCI distributors showed 114 days supply of hot rolled stainless steel plate and 88 days supply of cold rolled plate, exceeding the historical inventory level of 80-90 days and certainly not a critical shortage. leaf users at fair market prices.
Buyers who cannot obtain tonnage from domestic steelmakers may question this. Moreover, many believe that any improvement in the availability of materials is the result of an increase in imports rather than an increase in domestic production. In the short term, the supply of cold rolled products may remain tight as consumption of some grades and sizes continues to exceed supply.
Demand for stainless steel remained stable during the first few months of the year. Infrastructure spending should stimulate consumption in the medium and long term. However, the post-COVID-19 economic recovery is expected to slow in 2022 as inflation rises and geopolitical tensions escalate. The global stainless steel market in Ukraine is expected to be volatile in the coming weeks and months due to ongoing Russian military operations. Source: MEPS International Ltd.