In the United States, transaction prices for grade 304 cold rolled coil fell minimally in July, while grade 316 registered a small increase. Both are set to drop in August. Alloy surcharges are going to decrease significantly for both grades, and this will bring US transaction prices back down to where they were in February and March earlier this year.”

As described in the latest edition , it is likely that alloy surcharges will continue their decline in September. The extent of the decrease will depend on whether nickel prices remain around USD16,000 per tonne or drop substantially during the reference period.

Most US market participants reported a decrease in demand for stainless steel flat products last month, particularly for hot rolled coils. Although many said that activity was traditionally reduced due to the summer holidays, most commented that it was lower than normal. Some attributed a proportion of the decline to distributors and end-users delaying new orders in anticipation of further price reductions.

Nonetheless, domestic demand remains stronger than in Europe and Asia. Kirton said: “The weakness has certainly started to set in, but the fundamentals are still quite positive compared with those in other regions.”