NEWS

What We’ve Been Up To

Market Update Q1 2021

Hello TSM Partners,

We have been sending updates regarding nickel these last months.  The bull market for nickel continues.  There are other supply issues going on that we wanted to share with our customers.  Stainless, Nickel Alloys and Aluminum are experiencing the same type of surge and supply issues that carbon, flat rolled, and tube are seeing.  We believe there is a replenishing of supply chain inventories that were depleted during the COVID issues of 2020.  What is aggravating the situation is that this appears to be happening worldwide.  The EU, China, India, and most of the Far East are experiencing a surge in orders.  Below are some of the effects we are seeing:

  • Rates to ship containers from the India & China have almost tripled.  This affects finished parts coming to the USA as well.
  • There is a lack of capacity for containers shipping from India/China.  This is causing delays of over 4 weeks in most cases.
  • Indian & Chinese Rod mills are very busy and have increased pricing significantly.  They have raised at a faster pace than USA mills due to skyrocketing costs for shipping & scrap.
  • Prices for finished wire coming from India & China have risen significantly since December.   This is due to their increased cost of rod mentioned above and the high shipping costs.
  • Because of above, the domestic re-draw mills like Tri Star have seen a large influx in order intake.  Lead times have been increasing.
  • Base prices at USA mills for flat rolled & carbon are being raised.  Other products will follow if the current demand keeps up.
  • Many USA mills have started putting customers on allocation.
  • Lead times on wire rod are out four weeks or longer.
  • Surcharges are still going up.  We are anticipating a large increase in February……$0.08/lb. on 300 series and $0.04/lb. on 400 series.

Please review the attached power point for additional details:

Click HERE for Market Update Q1 2021 PPT

If you have any questions or would like to discuss your sourcing needs please let us know!

Jay Mandel

President & CEO | Tri Star Metals, LLC

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