The high price of stainless steel is dictated by the high cost of Nickel
According to the conclusion obtained in the recent analysis of stainless steel market spent by experts of the analytical Agency MEPS (INTERNATIONAL) LTD (UK), the growth of the base cost of steel is dictated by rising prices of Nickel, and not the increase in demand for these products in the global market. Experts MEPS also noted that between 2009 and 2011, even higher prices of the main raw material for the production of stainless steel grades have an impact on the cost of alloy metals is not so noticeable as «soaring» price of Nickel.
In his comments, analysts MEPS said that global market compelling indicators of substantial growth of consumption of stainless metal is not observed (even taking into account the statistics of the dynamically developing markets of India and China). The justice of such arguments proves not only the data on the international exchanges, trading in non-ferrous metals, but also the fact that with the beginning of a period of global recession, the major stainless steel producers in Western countries operate at less than full capacity.
Recall that in earlier MEPS forecasts of analysts assumed that the price of «stainless steel» in 2011 «can soar into double digits». And confirmation of these conclusions can serve as the prices of Nickel for the period from July 2010 to February 2011, the price of the metal increased by more than 55%.