Market developments stainless steel fasteners februari 2022
On a regular base we get questions from our partners concerning the price development of stainless steel fasteners. A Logical thing... considering the always fluctuating market movements! Significant stakeholders such as banks and manufacturers make forecasts, but often they don't get it right. Which external influences are important? When is a perfect time to place an order? What is currently going on and which forecasts can be made? To answer these questions our CCO Dennis Steegman will share his vision on the stainless steel market on an monthly base.
What is going on this month and what can be expected?
January got off to a tumultuous start. In particular, the price of nickel caused a significant increase in stainless steel prices. On average the price has risen about 20% in one month. One of the causes could be the Tesla deal with mining company Talon. The 75,000 tons of nickel comes from the not yet exploited Tamarack mine in Minnesota, United States. The mine is a Joint Venture of Talon and Rio Tinto. This big quantity affects supply and demand!
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Another fact is that the US Dollar is getting stronger against the EURO. A trend that showed itself especially from mid-May 2021. Since stainless steel fasteners purchased in Asia are settled in USD, this clearly affects prices.
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Meanwhile, the decision has been made regarding the anti-dumping duty on steel fasteners imported from China. The search for alternative sources will further increase the scarcity of supply, resulting in longer delivery times and higher prices.
Conclusion is that the increase that started in 2021 will continue in 2022. There are no signs of improvement in the short term.
