International | Jun 08 2006
Ever higher nickel costs are expected to continue and the industry consultants at MEPS are of the view that this will lead to increased stainless steel prices for at least the coming few months.
On MEPS’ calculations prices could rise by as much as 19% over the next four months.
However, over the medium term MEPS is less convinced the market will be able to continue at current levels.
This is because production is starting to rise to meet current orders and as Q3 develops the experts expect mill volumes to fall and nickel demand to drop.
As such, stainless steel prices are expected to fall later this year and early next year, however, this assumes a fall in nickel prices, which is by no means a certainty.
By Terry Hughes
