September 07, 2008

Allegheny Technologies sees SS recovery only in early 2008

US specialty metals and stainless products manufacturer Allegheny Technologies recently said it only expects a recovery in its standard stainless sheets business early 2008.

Allegheny Technologies said that divergent performances in its specialty metals and stainless segments. Shipments of standard stainless products slumped by 52% YoY to 57,000 short tons in the Q3 of 2007. Like other stainless operators, Allegheny has been hit by the aggressive de stocking cycle caused by the slump in nickel prices.

Mr L Patrick Hassey chairman, president & CEO of Allegheny Technologies said that “We had expected orders and shipments of our flat rolled standard stainless sheet to improve once the price of nickel stabilized. The monthly average price of nickel did stabilize during the third quarter and the October surcharge for Type 304, the most common nickel-bearing stainless grade, is the lowest surcharge for that grade in eleven months. In addition, US service center data indicates that inventories continued to decline during the third quarter. However, according to published information, mill owned inventories of finished goods increased”. Mr Hassey added that Allegheny itself hadn’t built any significant inventory in the period.