Why do stainless steel prices keep going up?
A steel supplier’s prices for the top 50 products have kept going up over the past two years despite a new Government plan to curb imports of cheap steel.
The price increase comes amid a renewed push to slash the cost of the alloy used in high-end consumer electronics, including laptops, tablets and phones.
Stainless Steel and its Importation A spokeswoman for the Australian Industry Group (AIG) said the price increase was due to rising demand and the fact that the steel industry was experiencing a decline in prices due to the introduction of a $30 import tax on stainless steel in July 2015.
“The Australian industry is suffering a decline due to a reduction in demand, and this will impact the pricing of stainless steel products across the industry,” she said.
In July last year, the Government introduced the import tax to prevent the importation of cheap aluminium, which was a major source of stainless-steel imports in Australia.
The tax will apply to stainless steel used in aluminium-containing products such as laptops, notebooks, tablets, smartphones and printers, as well as aluminium-coated steel used for the lining of industrial furnaces.
Industry groups have warned that the tax could have a negative impact on the industry and lead to job losses.
AIG spokesman Matt McLean said there was a growing understanding that the price rise was due primarily to higher demand from the US and China.
‘A little bit more’The spokesperson said stainless steel imports had increased by 7.9 per cent in the year to June this year compared to the previous year. “
While China’s economy has expanded substantially in the last decade, it is still struggling to compete with the US in key areas such as manufacturing, electronics and steel.”
‘A little bit more’The spokesperson said stainless steel imports had increased by 7.9 per cent in the year to June this year compared to the previous year.
He said stainless-iron imports were down by 10.7 per cent.
An additional 7.5 per cent was coming from a range of other metals including silver, copper, gold and zinc.
According to AIG, the industry is facing a major supply issue.
Mr McLean noted that Australia had the fourth highest stainless-nickel-nicure steel prices in the world.
We have been exporting more stainless steel to the US, so the supply of stainless is quite high, he added.
Steel prices have increased in Australia due to lower imports of steel from China, which accounts for almost 90 per cent of all stainless steel exports.
Since the introduction in July, the US has increased its import tax by $30 a tonne, and other countries including China and Russia have also introduced import taxes.
Meanwhile, China’s import tariffs are up by 30 per cent on steel products, and steel prices are expected to continue to increase.
‘There’s no doubt that it’s a little bit too much’Stainlight, which makes stainless steel for laptops and tablets, said its prices had increased over the previous two years.
Its aluminium-cased steel products have been more expensive than stainless steel.
It said its aluminium-based products were more expensive because of the aluminium content.
”We have a lot of aluminium in our products, but we don’t have as much as we should be and there’s no question that it is a little too much for our customers,” the spokeswoman said.
”We can’t afford to keep buying aluminium, so we’re looking to lower the aluminium component, which will also help reduce costs and reduce the cost-to the end consumer.”
In a statement, Stainless Steel Australia CEO, Andrew Nee, said it was the “greatest challenge” of the year and the result of a number of factors.
If aluminium was not used in a certain way, it would affect the steel quality.
If stainless steel were used for an application, it could also affect the quality of the product, the spokesman said.
The spokeswoman said the company had received numerous inquiries from consumers regarding its aluminium alloy.
She said the aluminium alloy used for its aluminium products was ”better in terms of strength, corrosion resistance and colouring than stainless, but it’s still not as good as stainless steel”.
Striker, which manufactures stainless steel and aluminium for aluminium-related applications, said there were a number concerns about the aluminium-carbonate-aluminium alloy used by the company.
Striking a balanceStrikers aluminium-plating and stainless steel plates are sold in the US as stainless, aluminium and titanium, with a carbonate-toaluminium ratio of 2:1 or more.
This ratio means the stainless plate has a higher degree of strength than the aluminium plate and is therefore better for aluminium applications.
However, it has a slightly lower carbonate toalith ratio than stainless plates.
Most aluminium plates sold in Australia