Lower prices for metal

25.03.2015 г.

Although foreign markets prices for stainless steel continued to decline, the time of their stabilization, apparently, is near. But home prices falling not so fast. At the moment, the average price reduction on the market of Ukraine 5% for stainless metal and 3% for aluminum.

Price levels stainless rolled metal on world markets continue to slide down. However, the negative trend is still slowed from the previous month, which is an accurate reflection of the dynamics of quotations of nickel. Prices of the main alloying element, according to investment banks, are already close to the key support level, which means that their tangible subsidence in the future may not happen, but some rise in prices is possible.

While prices for nickel is still falling, but much slower pace than in the second half of last year. In parallel with the decrease in the cost of the alloying element occurs a drop in prices of iron ore, which adversely affects the price levels usual black rolled and also reduces the cost of stainless steel.

Nevertheless, closer to the beginning of spring in the world markets has stabilized metal prices. Quotes of nickel, as already mentioned, come to an important resistance level. If the US Federal Reserve will postpone the increase in interest rates on loans, it may be perceived by players in the commodity markets as a stimulus to the game to increase, because the cheap money will remain available and the real sector, and speculators. At this step the US monetary authorities can go after their EU counterparts, who recently decided to issue an additional 1.1 trillion euros in order to combat the economic slowdown. These actions have led to significant subsidence of the euro and the strengthening of the dollar, and thus can weaken the competitiveness of the US economy. To prevent this from happening, the US Federal Reserve may indeed extend the period of near-zero interest rates indefinitely.

It is possible that the cost of stainless flats stabilized, and behind her and stop falling prices for stainless steel. However, the Ukrainian consumers of stainless flats are now more likely to keep not for foreign markets, and for the national currency, which is weakening faster than prices fall on global markets. As a result, prices for stainless steel in UAH terms still only grew. So in foreign markets is possible to stabilize price levels stainless flats, and their behavior in the domestic market is increasingly dependent on the foreign exchange market. Perhaps the upcoming IMF loan will stabilize the national currency, which will keep prices for stainless steel from further growth.