UK/US month-ahead natural gas price spread narrowest in six years

Monthly alloy surcharges on austenitic grades of stainless steel flat-rolled products in Europe are up again for September, hitting their highest levels in over a year, first mill announcements indicated Monday.

Finland's Outokumpu, the continent's largest producer, set its alloy adjustment factor for type 304 (4301) flat products at Eur1,089/mt ($1,230/mt) for September, up Eur76/mt from August, and marking its highest level since August 2015.

From levels below $9,000/mt in late June, dollar-denominated nickel prices on the London Metal Exchange rallied to hit a 12-month high above $11,000/mt on August 19 before slipping back.

The LME nickel cash settlement price averages $10,546/mt for August to date, up from $10,169/mt for July.

Outokumpu's surcharge for molybdenum-bearing type 316 (4401) flat products was set at Eur1,548/mt, also a high since last August, up from Eur1,450/mt in August.

Having shed over $2/lb from a 14-month high of $8.45-$8.75/lb, basis Platts assessments in the last week of May, spot molybdenum oxide prices have rallied since late July, gaining a dollar to $7.50-$7.60/lb as of Friday.

Meanwhile, Outokumpu's surcharge for nickel-free type 430 flat products is up Eur16 at Eur480/mt for August, and the highest level since the July 2015 surcharge of Eur486/mt.