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. Finished products of stainless steel are in extremely tight supply, and by most indications could stay that way for the remainder of the year.

What is the Price of Stainless Steel?

Similar to other metals, the price of stainless steel is heavily influenced by the cost and availability of its constituent commodities, primarily nickel and chrome. This cost fluctuation impacts end-users through stainless steel surcharges. These surcharges are additional fees added to the base price per pound of the alloy and can vary depending on the mill. Typically, the base price is established using the following components:

• Alloy

• Production Cost

• Yield Factor

• Supply-demand Fundamentals

Below is a current snapshot of stainless steel surcharges year to date, with the year-ago period highlighted in blue.

What is the Price of Nickel?

Nickel prices are currently under pressure as Indonesia continues to ramp up production and inventories rise. Despite this, there seems to be a notable technical support level around $7/lb.

According to Webb, this price point may be acting as a psychological barrier for traders, with several instances of price support at this level over the past year.

While fundamental factors suggest that prices aren't likely to soar back to $10/lb., the support seen around $7 indicates a potential bottoming out process. The growing nickel inventories also point to a well-supplied market, making tight conditions unlikely in the near future.

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.

Chrome vs Nickel

What is the Price of Molybdenum?

Molybdenum 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.

Check out the impact it can have on the grades below:

As the price of molybdenum goes up, it impacts that 316 stainless steel surcharge.

 

304 vs. 316 Stainless Steel

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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. 

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