The Monel alloy market showed remarkable stability in February 2025, with prices in both the United States and Germany remaining unchanged despite significant fluctuations in key raw materials. This price stability stands in sharp contrast to the volatility seen in nickel and copper markets, revealing the complex dynamics at work in the specialty alloy sector.

Key Takeaways:

• Monel prices showed at 0% change in both the US and German markets during February
• Nickel futures on the LME rebounded strongly, putting upward pressure on production costs
• Copper prices surged in response to potential US tariffs, with premiums reaching record levels
• Construction sector weakness in Germany contrasts with mixed activity in the US
• Raw material cost increases have been absorbed by Monel producers rather than passed to consumers
• Supply chain adjustments anticipating tariffs are reshaping trading patterns

In the United States, Monel prices stayed steady throughout February month, even with slight increases in the prices of its main raw materials. After President Trump's announcement of possible 25% tariffs on industrial metals, copper rod prices rose sharply, pushing the premium of U.S. Comex copper futures over London Metal Exchange prices to a record high. At the same time, nickel futures bounced back strongly, making it a tough cost environment for Monel producers.

The decision by U.S. Monel manufacturers to keep prices stable shows their strategy in a market facing challenges in the construction sector. In February, the U.S. construction industry showed mixed results, with high demand for skilled labour but ongoing workforce shortages affecting project schedules and costs. This limited end-user demand has restricted manufacturers' ability to raise prices, forcing them to absorb the rising costs of raw materials to avoid losing customers.

Similarly, the German Monel market maintained stable prices regardless of rising costs from copper and nickel. German copper prices went up significantly because of short covering on the LME and speculation about U.S. tariffs. At the same time, the domestic construction sector continued to struggle, with activity dipping across residential and commercial projects. Civil engineering remained the only positive area, but it wasn't enough to significantly boost Monel demand.

According to ChemAnalyst, the outlook for the Monel market remains cautiously neutral for the second quarter of 2025. There could be small price adjustments if raw material costs keep rising. The future of the market depends on three main factors: the specifics of the U.S. metal tariff, a recovery in construction activity (especially in Germany where business confidence is improving), and the stability of nickel supply from the Philippines. Monel demand might get a boost from infrastructure spending plans, especially if government programs start in Germany, where spare capacity is low, creating a good environment for growth without significant price hikes.