US: 300-series cold-rolled stainless steel prices slide on lower alloy surcharges

• Falling ferrochrome and molybdenum prices weigh on surcharge levels
• Weak and uneven demand limits mills’ pricing flexibility

SteelDaily: Cold-rolled (CR) stainless steel prices in the United States remained mixed in early December, with 300-series grades under pressure due to lower alloy surcharges, while 400-series prices remained stable. Soft raw material prices and subdued downstream demand continued to cap any upward price movement.

As of 10 December, prices for 300-series cold-rolled stainless steel edged lower. Grade 304 CR sheet was assessed at $3,365/t, down 0.6% m-o-m and 0.9% from October, while Grade 316L CR sheet declined more sharply to $5,160/t, registering a 1.8% m-o-m and 2.5% q-o-q drop. In contrast, 400-series CR prices remained stable, supported by unchanged base prices.

Industry sources indicated that while base prices were largely unchanged in December, reductions in alloy surcharges pulled overall transaction prices lower for 300-series material. In November, ferrochrome prices averaged $3,638-3,968/t, down 1.43% m-o-m, amid sluggish spot trading. Molybdenum oxide prices fell sharply to $49,900-50,950/t, declining 9.03% m-o-m on weak demand. Reflecting softer alloy costs, Grade 304 stainless surcharges were cut by $21-25/t by major producers.

Market sentiments
Demand conditions continued to remain weak. According to market participants, buying interest has been sporadic, with the traditionally slow fourth quarter showing even weaker-than-usual momentum this year. Distributors noted that mills are adopting a defensive pricing stance, keeping base prices steady amid limited demand recovery, while import offers also remained largely unchanged m-o-m.

Outlook
US CR stainless steel prices are expected to remain range-bound to slightly weak in the near term, as subdued demand and soft alloy prices continue to weigh on surcharge levels. Unless downstream consumption improves meaningfully or alloy prices rebound, upside potential for 300-series CR stainless steel appears limited through the remainder of the quarter.

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