Monthly alloy surcharges on austenitic grades of stainless steel flat-rolled products in Europe are set to rise in June, mill announcements indicated Monday.
Increased raw materials prices and a rise in carbon steel prices are also paving the way for a rise in stainless base prices, one mill source told Platts.
"From the mill perspective, with order bookings for the summer we have seen an increase in base prices accepted by the market," he said, citing higher prices for ferrous scrap, raw materials such as ferrochrome, and carbon steel.
"Support is coming from different angles and sources," he said. "It supports our aim to push a bit more on base prices for spot business."
Base prices in Europe for flat products had been largely static for several months, but there are "first signs that a bottom price level has been reached," he added.
Finland's Outokumpu, the continent's largest producer, set its alloy adjustment factor for type 304 (4301) flat products at Eur914/mt ($1,023/mt) for June, up Eur61/mt from May.
Dollar-denominated nickel prices on the London Metal Exchange hit a 2016 high at around $9,700/mt in early May, but have declined steadily since then, hitting seven-week lows below $8,400/mt on Monday.
The LME nickel cash settlement price averages $8,793/mt for May to date, down from $8,853/mt for April but up from the January-April average of $8,589/mt.
In its 2016 strategy update, presented in London last week, Russian producer Norilsk Nickel suggested that the market would move into deficit this year but noted that such is the current exchange stocks overhang -- equivalent to 83 days' consumption at the end of 2015 -- that nickel stocks would still be running at a relatively high level even after three years of potential drawdowns.
Outokumpu's surcharge for molybdenum-bearing type 316 (4401) flat products was set at Eur1,289/mt, up from Eur1,172/mt in May.
Spot molybdenum oxide prices have risen dramatically in recent weeks on the back of supply constraints and a flurry of trade buying, moving above the $8/lb level for the first time since April 2015.
The Platts daily dealer oxide assessment was set at $8.30-$8.60/lb Monday, up from $5.55-$5.65/lb a month ago and from $7.65-$7.75/lb this time last year.
Meanwhile, Outokumpu's surcharge for nickel-free type 430 flat products is up Eur30 at Eur448/mt for May.
Spain's Acerinox set its type 304 surcharge at Eur838/mt (Eur0.838/kg) for June, up from Eur739/mt in May; its 316 surcharge is up to Eur1,208/mt from Eur1,045/mt, with 430 rising to Eur395/mt from Eur312/mt.
