• 16 maart 2022

Market developments stainless steel fasteners march 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?

Meanwhile the Russian invasion of Ukraine is also affecting stainless steel prices. Last week nickel prices rose to a record high of over 100.000$ per MT and trading was halted last Tuesday. The price was then fixed at around 48.000$.

Russia accounts for about 7% of the yearly nickel supply, ranking number 3 worldwide. The trade restrictions distort supply and demand, but the very rapid increase is disproportionate. The conclusion is that speculative trading is a major culprit. A very dangerous situation in our view, as currently supply can be severely disrupted in the medium term due to a very wait-and-see attitude and not buying into stock. The ultimate consequence may be scarcity and hoarding behaviour. Both are very undesirable. 

We also see that the delays from Chinese ports are increasing again. The Chinese government reacts very anxiously to new Corona outbreaks and throws large cities into lock-down in the event of a new outbreak.

We recommend keeping a very close eye on developments in the coming period. Naturally, we will report as soon as there is any news to report!