North America

Towards the closure of the final quarter of 2022, the Monel prices edged in the downward direction in the US market owing to the stable supply-demand outlook. Following the March short squeeze and temporary suspension of the LME nickel trade, many market participants exited or reduced their exposure, resulting in a liquidity crisis and price swings in the three-month contract that were frequently unrelated to fundamentals. Market participants claim that there was inflation and that a recession was possible. As a result, the US Federal Reserve increased borrowing costs to cool the economy and relieve price pressures. The consumer prepares for annual contracting and prefers not to accept excessively inflated raw material prices in mid-Q4. In the alloy segment's weak position, alloy prices fell from their previous indicative levels in early December to current market levels. Alloy prices were reported to be stable by the end of December. Alloy buyers reported staying on the sidelines in response to softer market conditions and were encouraged by shorter steel mill lead times as they worked down well-stocked inventories and controlled costs. As a result, alloy 400 sheet prices for Ex Florida (USA) settled in December at USD 72450/MT.

Asia Pacific

In the final quarter of 2022, the Monel prices in the Chinese market showed stagnancy because of the limited downstream demand. The demand for Monel increased in mid-Q4 as a result of frequent positive developments in the new energy industry chain. The profit margin on stainless steel increased, causing the steel plant to maintain a high production schedule. Furthermore, the number of infections reached an all-time high. Lockdowns in the major cities choked domestic consumption, disrupted supply chains, and even ignited street protests in many cities. Furthermore, supply and demand for nickel ore remained low, but there was a strong willingness to support the mine's price, which was expected to be unsustainable due to weak fundamentals. The volatile molybdenum prices in the international market had influenced the sentiment of the domestic Monel market. Some mining companies and traders actively sold, easing the supply of raw materials. Despite this, most mining companies were holding back cargo in preparation for price increases. As a result, Ex Shanghai Alloy 400 sheet prices settled at USD 33040/MT.

Europe

In the European market, the Monel prices edged in the upward direction owing to the fluctuating raw material Nickel costs and limited inventory availability. According to market participants, Nickel Powder prices were trading sideways as volumes fell to record lows in October. Inventory at service centers, brokers, and master distributors remained plentiful. According to the LME, no Russian producers would be penalized. The London Metal Exchange's low liquidity had increased volatility since the last nickel short squeeze. According to manufacturers of manganese and silicon alloys, ferrochrome prices in the European market were mostly down in December due to seasonal decreases in business activity. In contrast, the ferroalloys segment saw a price increase due to speculative trading company actions and a similar trend in China. The supply of raw materials for molybdenum ingots was insufficient, and demand in China was extremely high, especially in December. Consumers in Europe required materials, and it was difficult for them to find these prices after the Christmas holiday. Thus, the price of Alloy 400 for Ex Werdohl was settled at USD 42825/MT.

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