AL6XN Prices Fall in the Global Market Amidst Declining Feedstock Costs

The AL6XN plate market showcased a sluggish trend in the final week of April, as it is typically a slow month due to the holiday season in several countries. Market players have observed that demand for AL6XN plates remains limited to immediate needs, and dwindling prices shattered any hopes of increased distributor restocking. Moreover, weaker global consumer demand has affected the raw material Nickel markets, causing refined premiums to fall from the record highs of 2022. In addition, Nickel prices in China have experienced eight consecutive weeks of decline, while Nickel Pig Iron (NPI) prices remain weak due to a decline in the stainless steel industry in China. However, the global AL6XN plate market is showing signs of stabilization and a rising buying mood. This is indicated by heavy orders from the European market to Asia, constant raw material costs, and further rising costs due to scarcities in the Chinese market.

AL6XN plate prices have remained reasonably steady as market participants in the United States report variable levels of purchasing activity. According to market players, local steelmakers are offering further discounts to entice orders for more significant tonnages. Buyers are especially hesitant to replace stocks of Molybdenum-bearing grades after a period of raw material price fluctuation. Market players claim that AL6XN's transaction value in the US dropped in April. This is a significant reduction, yet AL6XN plate costs remain historically high. In the short term, US AL6XN Plate values are projected to stay elevated compared to those in other areas.

AL6XN plate costs fell in the European market in April, and leading companies reported that all stainless-steel flat product prices remained low. In recent weeks, the rate of decline has quickened as the industry remains plagued by high inventories and economic uncertainties. There are no signs of an AL6XN plate raising prices before the summer, so further price cuts are inevitable in the coming months. The conflict between European stainless-steel producers and the processing industry and the resulting artificially generated buying restraint will almost certainly result in an extension and potentially strengthening of the EU Safeguard policy. Owing to the downstream industry's wait-and-see approach and exorbitant downward pressure, AL6XN plate pricing reaps immediate repercussions.

In April, the product selling values in the Asian AL6XN Plate market declined in all countries examined. End-user demand in Taiwan and South Korea remains subdued. Furthermore, local traders stated they are having problems drawing orders from their overseas buyers. Despite some signs of price increases in China, the month-on-month average for the AL6XN plate remained negative. Asian mills may seek a cost-based increase in selling prices in the second half of May 2023. However, without a significant improvement in demand, steelmakers will find it difficult to implement such increases. The current AL6XN Plate market is primarily driven by stable ferromolybdenum pricing and a scarcity of raw materials. Molybdenum prices have recently stabilized, owing primarily to a resurgence in steel mill bidding volume. Furthermore, the market speculated that the raw material shortage from Tsingshan caused AL6XN prices to rise. However, market participants stated that supply and demand are still unequal, so AL6XN plate mill prices remain to be seen.

As a result of the constant supply-demand outlook, AL6XN plate prices in the global market will stay stable in the coming weeks. Furthermore, raw material and transportation costs have decreased. In the upcoming months, the businesses should continue to make respectable profits due to the large order backlogs.