In the week ending June 9, the price of Monel showcased an upward momentum in the US market, with stable lead times. Domestic players assert that the increase in demand from the downstream automobile, oil, and gas industries contributed to the slight rise in Monel prices. Additionally, the rising prices of raw materials such as Nickel and Copper have further supported the upward trend of Monel prices in the US spot market.

The price of feedstock Copper and Nickel witnessed notable increases of 1% and 1.3% respectively compared to early June prices. This surge in Nickel prices occurred despite the oversupply of the metal in US Nickel inventories. Contributing to this upward trend, Indonesian Nickel mines have increased their production, aligning with Indonesia's ambitious plan to establish itself as a prominent player in the electric vehicle battery metal sector. The rising demand for electric vehicles from the US automobile industry has played a pivotal role in driving up the prices of Nickel. This surge can be attributed to the persistent pent-up demand for new automobiles within the US car market. As a result, the combination of increased production from Indonesian mines and the rush in electric vehicle sales in the US has significantly supported the upward trajectory of Monel prices.

The recent surge in raw material prices of Monel, particularly iron ore, can be partially attributed to concerns regarding potential supply constraints. This situation arose when Transnet, a South African freight logistics group, suspended operations on its main iron ore line due to the theft of power equipment. This critical railway line connects the iron ore mines in Sishen, located in the Northern Cape, to the Saldanha port in the Western Cape, serving as the primary export link for iron ore in South Africa.

Transnet is actively working to restore power and resume operations on the iron ore line. However, no estimated timeframe for recovery has been provided at this time. The disruption in the supply chain has raised significant concerns within South Africa's mining and export industries. Consequently, this situation has caused a slight increase in Monel prices in the local US market, as the potential impact on iron ore availability has created uncertainties and led to market fluctuations.

The preference for using Monel in the oil and gas industry, from extraction to the final transportation of oil, has led to an increased demand for Monel in the US oil and gas market. Furthermore, the downstream US marine industry has shown a rising trend of approximately 9% this week, resulting in increased demand for Monel. Buyers are placing substantial orders as the shipping industry tends to further long-term growth.

According to ChemAnalyst, Monel prices are anticipated to exhibit an upward trend in the coming months due to the increased demand from various downstream industries in the United States, including oil and gas, chemical, and automobile sectors. Furthermore, the prices of key raw materials of Monel like Nickel and Copper are projected to experience an upsurge in the upcoming months due to the growing demand for these materials. Consequently, the rising costs of raw materials, coupled with the increased inquiries from downstream industries, will further contribute to the upward movement of Monel prices.