Monthly alloy surcharges on austenitic grades of stainless steel flat-rolled products in Europe for May are set to fall to their lowest levels since January as both nickel and ferrochrome prices have weakened, first mill announcements indicated.
Surcharge levels had resumed their upward trend in April, hitting fresh multi-year highs.
Finland's Outokumpu, the Continent's largest producer, set its alloy adjustment factor for type 304 (4301) flat products at Eur1,350/mt ($1,466/mt) for May, down Eur105 from April's five-year high.
Dollar-denominated nickel prices on the London Metal Exchange moved briefly back above $10,000/mt in early April but have since come under renewed selling pressure, hitting their lowest level since June 2016 last week at just above $9,300/mt.
The LME nickel cash settlement price has averaged $9,776/mt for April to date, down 4.6% from $10,230/mt for March.
Outokumpu's surcharge for molybdenum-bearing type 316 (4401) flat products was set at Eur1,936/mt for May, down Eur85 from April.
Spot molybdenum oxide prices moved above the $9/lb level in early April, basis Platts' assessments, for the first time since January 2015, but the market has since eased back to trade below $8.80/lb.
Meanwhile, Outokumpu's surcharge for nickel-free type 430 flat products is down Eur39 to Eur769/mt for May.
The European benchmark ferrochrome price negotiated between producers and steel mills was settled at 156 cents/lb for second-quarter 2017, down 11 cents, or 6.7%, from the previous quarter but up 90% from 82 cents lb in Q2 2016. Outokumpu's type 430 surcharge was Eur418/mt in May last year.
