As previously predicted by MEPS, EU average stainless steel transaction values increased for all grades in January 2012. These advances were mainly due to increases in basis numbers. Most of the growth in sales was due to a surge in inventory replenishment by customers looking to buy ahead of anticipated rises in the February 2012 alloy surcharges.

However, buyers kept a cautious approach to purchasing as they remain uncertain regarding price movements in the coming months.

Alloy surcharges are set to rise in February 2012 on the back of higher nickel, molybdenum and scrap costs. European mills are also likely to push for further increases in basis figures in the short term. This should spur buying activity as customers purchase ahead of future price advances. Consequently, transaction values are forecast to climb over the next few months.

(Sourced from MEPS EU Stainless Steel Price Forecasts)