The decline in feedstock Nickel prices has significantly contributed to the sharp decrease in Stainless-Steel CR Coil prices in the United States. Prominent mining companies like Wyloo Metals Pty Ltd. are shutting down nickel mines due to factors causing financial losses, thereby impacting production and usage. Additionally, market challenges have led companies such as the BHP Group and First Quantum Minerals Ltd. to suspend projects or reduce employment, influenced by the downturn in nickel prices. This is attributed to weakened demand for electric vehicles and an influx of nickel supply from Indonesia. Prony Resources, a nickel producer in New Caledonia, is also experiencing a downturn, affecting Stainless-steel CR Coil prices in the USA. In response to the declining trend, the Australian Mining Association has advocated for a new production tax credit during discussions with senior ministers. They propose a 10% production tax credit (PTC) for downstream producers to safeguard jobs and uphold the country’s aspirations of becoming a critical minerals powerhouse. These developments have impacted the Stainless-Steel CR Coil prices, prompting buyers to scale back orders amid uncertainties and a pessimistic outlook in the feedstock market.
US Stainless-steel CR Coil Prices Remain Plunge Amid Weak Downstream Market Purchases
In the first half of January 2024, the Stainless-Steel CR Coil experienced a severely declining trend in the US spot market as the demand from the downstream industries remained flat, along with an ample feedstock supply of Nickel and Iron Ore. The Nickel oversupply across the globe has caused major concern among the Stainless-Steel CR Coil manufacturers as the production cost plunges. Meanwhile, the downstream Automotive and Aerospace department kept the market firm across the USA. Furthermore, the US government has imposed anti-dumping duties on the overseas supply of Stainless-Steel CR Coil from nations, such as Taiwan and China. The mills were incited to reduce their prices as the Nickel slump and slowing downstream industries demand showed a pessimistic market sentiment across the USA.
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