ASA PVF Report: Nickel Prices Dip, Stainless Steel Stability, and Election Anxiety Ahead

From the new ASA Industrial Piping Division Commodities Report (written by members of the ASA IPD advisory council), raw material prices have softened a bit as nickel prices continue to slide. Weld fitting prices have remained fairly stable, though closer to a low point over the past year.

Activity has been a bit spotty as projects remain on the drawing board more than the construction phase. We still expect to see stronger activity over the next two quarters.

The upcoming election will create anxiety for many industries that have been negatively affected by the climate change proponents. Hopefully we will get a more favorable PVF climate in the future if a more supportive administration takes the reigns.

Additionally, LME nickel prices rose sharply in May, in line with copper’s dramatic rise. Nickel’s month-to-date decline in June is larger than May over April increases, but it’s important to note LME prices are based on Class 1 nickel.

In fact, July surcharges (304/L-2.84%, 316/L +1%) are only modestly different than June’s, in which 304/L achieved its highest level since last October. Additionally, there are other factors currently in play that are undermining price levels of stainless steel pipe and its byproducts.

Lead times, especially for import material, are extending and shipping costs are rising. The Houthi rebels continue to wreak havoc on international shipping, and beyond the logistical challenges and delays, rates are continuing to increase as we near the peak surcharge season.