With the December announcement that ATI is exiting the market for most commercial stainless grades (304, 316, 301), the stainless steel flat roll market has become volatile. The exit left many customers scouring for tonnage and availability with other domestic mills. This has caused lead times to extend on certain grades to 18 weeks, with an average of 12-14 weeks on most commercial grades. With an uptick in business for mills before the Allegheny announcement, many mills have announced price increases ranging from 2-6% on any new orders and have put many customers on allocation. With base cost prices rising the raw material surcharges have followed suit. Sample 301 7% nickel surcharge increases:
January 2020: $.5584
February 2021: $.8028
Costs are nearing a ten year high on most grades. How can Slice of Stainless help? We have a flexible business model to help battle rising costs, offering long term agreements or small cut pieces that avoid stocking more than you need. Please reach out to your sales person with any questions.