European prices for stainless steel continued to fall relative to the cost of components of the alloy. The pricing system is "base plus Supplement for the alloy" was abolished for the majority of transactions between producers and major customers such as large distributors and stockists. Nevertheless, plants continue to publish their surcharges for alloys. Thus, it is possible to calculate the nominal base price by deducting an additional alloy of "effective prices".
this year the value of transactions has been increased several times less than the published surcharges for alloys, or decreased more than the decrease in the declared indicators of the mill. In any case, the nominal base price is reduced.
Figures produced in recent months, fell far below the numbers that were historically considered the break-even levels for producers.
the root of the problem lies in the mismatch between the cost of raw materials, in particular Nickel, and the demand for finished stainless steel.