Are stainless steel alloy surcharges coming to an end?
Are stainless steel alloy surcharges coming to an end?

28 May 2024 – The sudden end of the European benchmark price for ferrochrome may have heralded the end of the fanciful stainless steel alloy surcharges. What happens next? And the prices for base metals on the LME are friendly and rising at the start of trading.

Are stainless steel alloy surcharges coming to an end?

Last week, the South African mining company Merafe Resources (Glencore), which had previously set the European ferrochrome benchmark prices and thus had a significant influence on the calculation of alloy surcharges for stainless steel, announced that no new benchmark prices would be published from June 2024.

What alloy surcharge fantasies are coming next?

With the discontinuation of the EU ferrochrome benchmark prices, it will now be interesting to see which fantasies the stainless steel mills will follow in the future when it comes to alloy surcharges. It will also be interesting to see what crystal ball or coffee grounds the self-proclaimed experts will have to look into in future when they want to predict the development of stainless steel alloy surcharges.

Ferrochrome and stainless steel scrap futures soon on the LME?

Initial thoughts on this have already been expressed by the stainless steel recycling industry, which recently submitted a proposal to the London Metal Exchange (LME) to introduce ferrochrome and stainless steel scrap futures – a proposal which, according to media reports at least, may have met with interest from the LME.

Base metal prices remain favourable

Prices for base metals on the LME were extremely favourable at the start of trading today. Copper, zinc and lead were each up by around 1.5%, while nickel and aluminium started the day with price rises of 1.14% and 1.24% respectively.

The Asian commodity exchange SHFE has already shown a favourable trend in base metals today, with individual commodities recently posting gains of up to 2%.

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