Price evolution, price breakdown, scrap prices

All metal prices fluctuate. Iron and aluminum experience minor fluctuations. Inox prices, however, vary much more significantly. In the short term, prices vary due to speculation in international markets, which are difficult to predict. In the medium term, the best predictor is the health of the global economy. Trends become more apparent with years of price tracking, but there are no certainties.

What Influences the Price of Inox?

The price of stainless steel (inox) is influenced by various factors, including raw materials, production processes, supply and demand, and specific market conditions.

Historically, inox prices have been subject to significant fluctuations, much greater than those of steel or aluminum. These fluctuations are very challenging to predict, even with years of price tracking.

Here are the key factors determining the cost of inox:

  1. Raw Materials
    1. Nickel Prices: Nickel is a crucial component of stainless steel, and its price can fluctuate significantly on the global market. Higher nickel prices typically lead to higher inox costs. Search for ‘nickel commodity prices’ to find sites like ‘trading economics’ or ‘markets.businessinsider’.
    2. Chromium Prices: Chromium is essential for inox's corrosion resistance. Changes in chromium prices also directly affect stainless steel costs.
    3. Other Alloys: Elements like molybdenum, copper, and titanium can be added to enhance specific properties, and their prices can impact the final cost.
    4. Scrap Prices: As scrap constitutes a substantial part of new material, it also determines inox prices. Scrap prices are closely tied to supply and demand.
  2. Production Processes
    1. Production Technology: The costs of technology and equipment used in stainless steel production play a role in the final price. More advanced technologies may have higher initial costs but can be more efficient and cost-effective in the long run.
    2. Energy Consumption: The energy required for melting, rolling, and other production processes can significantly contribute to costs. Fluctuations in energy prices can thus influence inox prices.
  3. Supply and Demand
    1. Global Demand: The demand for stainless steel in various industries such as construction, automotive, and consumer goods can influence the price. High demand typically leads to higher prices.
    2. Supply and Inventory: Availability of raw materials and factory production capacity play a role. Shortages can lead to price increases, while an abundance of inventory can lead to lower prices.
  4. Specific Market Conditions
    1. Import Tariffs and Trade Policies: Tariffs on imported (stainless) steel and trade policies between countries can impact prices. Protectionist measures can lead to higher prices for imported steel. In recent decades, strong subsidies in Asian countries have led to import tariffs in Europe and the US.
    2. Inflation: General economic factors like inflation can increase production and distribution costs, ultimately affecting stainless steel prices.
    3. Speculation and Rumors: Speculation and rumors, such as strikes in mines or transport issues, can temporarily impact prices. With years of price tracking, I have heard so many ridiculous speculations... that I have become somewhat immune to them.
  5. Specifications and Finish
    1. Material Quality: Higher quality inox, such as RVS316, costs more than RVS304 due to the addition of extra alloying elements like molybdenum.
    2. Surface Finish: Polished, brushed, or otherwise processed surfaces have additional processing costs, increasing the price.
    3. Thickness and Shape: Thicker materials and complex shapes can lead to higher production costs.
  6. Transport and Logistics
    1. Transportation Costs: The cost of transporting stainless steel from the factory to the customer can vary based on distance and fuel prices.
    2. Packaging Costs: Safe and protective packaging can also increase costs, especially for high-quality or delicate products.

Conclusion

The price of stainless steel is influenced by a combination of raw material costs, production methods, market conditions, specifications, and logistics costs. Additionally, speculation and rumors can cause significant short-term price fluctuations, while the global economy's health is a good predictor of price trends in the medium term. By understanding these factors, buyers and producers can better navigate price fluctuations and make informed decisions.

And... while as a processor, you can see through and relativize these speculations, you still have to endure the market. Even if you know that the speculations of the day are absurd, you will still pay a high price if the market price is high.

PRICES OF FINISHED PRODUCTS

Of course, fluctuations in material prices affect the prices of finished products. For the end consumer, only the price of the final product matters.

Here are some frequently asked questions and their answers:

  • Can I get a price per m² or per kilo for materials?

Kilo or surface prices are not common in our sector. We prefer to calculate a correct and fixed price based on the received data. Except for a few exceptions, small deviations in size do not affect the quoted price. Therefore, a rough measurement is sufficient for a quote.

  • How long can prices be maintained?

There are periods when inox prices remain very stable for months, only to fluctuate sharply. Unfortunately, no one has a crystal ball, and we can never really answer this question. Usually, prices can be maintained for a few months unless there are exceptional circumstances.

  • Where do I send price inquiries?

A simple email to sales@alinco.be is sufficient. We typically respond to these fairly quickly. If someone needs to visit for larger projects, that is not a problem.