Nickel Decline May Lower Stainless Steel Fastener Prices
Nickel Decline May Lower Stainless Steel Fastener Prices
Jason Sandefur
Nickel prices have tumbled over the last month, as inventory has grown in recent weeks. At least two factors are working to lower prices, Fastener & Fixing Europe editor Phil Matten told FastenerNews.com.
“The London Metal Exchange fired a warning shot over the bows of some of the traders in relation to alleged collusion. That resulted in the steep drop around June 7,” Matten explained.
In addition, several steel companies have increased output of low-nickel or nickel-free stainless steels. Matten noted that these alternatives are not viable for use in fasteners, but he said that the overall increase in low-nickel stainless steel could significantly cut overall market demand for nickel. This could eventually lower the cost of stainless steel fasteners.
“The impact on fastener prices is not going to be immediate,” Matten insisted.
Analysts predict nickel prices will continue falling in order to reflect supply and demand in the market. Nickel has dropped to about $36 per ton in July after peaking at $51.80 on May 9, according to Thomson Financial. �2007 FastenerNews.com and Fastener & Fixing Europe
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