Monel Prices Reflect Mixed Sentiments Globally at the End of Q4

Germany: Monel (alloy 400 sheets) prices in the global market experienced mixed sentiments at the end of the fourth quarter, as upstream nickel prices were under pressure from weak downstream demand. According to market participants, the European downturn and the threat of a prolonged recession in the United States have continued to weigh on Monel prices. According to our source, upstream nickel prices were bullish throughout November. As nickel prices retraced slightly from their early-month rally this week, upside price action continued to support a short-term range breakout. Sustained gains foster more bullish anticipation for Monel, which may support the continuation of the short-term uptrend. Meanwhile, Monel volumes remained stable in December.

In the European market, spot markets for upstream nickel are under pressure. The spot market for refined nickel products in Europe fell further this week after some participants noted a drop in downstream demand before the end of the year. Market participants say everything has shifted once again as weaker inquiries emerge in the region. Domestic Monel manufacturers anticipate a slowdown in business in the coming weeks. According to European traders, some producers can be flexible with inputs. Participants also stated that prices remain under pressure due to increased supply, though the price range remained stable this week despite decreasing demand. As a result, Ex Werdohl Monel (Alloy 400) prices settled in November at USD 41850/MT.

According to Monel suppliers, interest rates and energy costs are impacting everywhere, and with buyers reducing year-end intake, we are hearing quieter all around. Additionally, total Monel availability in the European market is reported to remain historically low. However, due to a lower demand outlook, the European market showed a downward trend in November and mid-December. Wide compensation ranges for nickel products are still being reported in Europe, with participants reporting a disparity in valuations between certain regional manufacturers.

According to our sources, Monel prices fell by more than 3.2% in November as nickel premiums remained unchanged and spot activity in the US market was limited. This week, market participants maintained their belief that trading activity was quiet. Other market sources have echoed this sentiment, reporting that the 2023 negotiations have halted. Despite the current lull, most market participants believe Monel trading will resume in the first quarter of 2023. As a ripple effect, the Monel (Alloy 400 Sheet) prices for Ex Florida settled at USD 72450/MT in November. With rising raw material costs and increased demand from the downstream sector, ChemAnalyst anticipates that Monel prices will rise globally in the upcoming months.