Price of Nickel

[macmet]

We use astm a297 grade HH castings for our furnaces. A little while ago I started a thread about possible alternatives to that material because of cost. But, we were unable to find an alternative in time so we went ahead and used the HH again b/c we know it works well.

Anyway, in the last six months our foundry is constantly raising their price stating the price of nickel keeps rising. I am wondering if people who work in the casting industry can tell me if this is actually true or if I'm being lied to. I went to google and found this website ->

http://www.infomine.com/investment/metalschart.asp?c=Nickel&r=1y

Am I wrong when I assume that the price the foundry pays for nickel foundry decreases when the price of the metal is decreasing? Why would these two not be related?

 

[salmon2]

As far as I know, the nickel price has been decreasing recently or dropped from its record high. But Moly and iron ore have been increasing...

Good website by the way, I will bookmark it.

 

[salmon2]

I understand it in the same way as you that decreasing of nickel should not justify metal price increase.

 

[IRstuff]

BUT, look at the chart for the last 6 months, a low of 11.50 and a current price of 13.00

TTFN

FAQ731-376

 

[IRstuff]

Moreover, the price appears to have at least doubled since the end of 2006, with a serious "bump" in the first half of last year.

Plus, it's unlikely that your supplier is simply buying spot, so there may be some lag in their prices, depending on the depth of their supplier.

TTFN

FAQ731-376

 

[dbooker630]

We have been using HK in our furnaces and have been trying to time our purchase orders when the nickel price is on the downslide. For the most part nickel, since it peaked at nearly $25/lb last summer, has stayed between $11 and $15 since then. Trendline over the past 60 days is downward but there is still some volatility, just not like last year. At this minute it is $13.04/lb on the

http://www.kitcometals.com

site.

 

[macmet]

If you actually go to the six month report (I posted the 1 year report) it shows that nickel was more expensive six months ago.

But that wasn't really my question, when we started getting quotes and issuing POs I think it was probably on the downward slope of the big hump last year (I can get dates I suppose). I was wondering if the price for the castings should have gone down and if our foundry is pulling a fast one on us.

I did not consider that the foundry would likely buy stock and sell the material at that price. But that does not explain why they keep moving the prices up on us.

I assumed the price of the nickel was the determining factor since vendors seemed to blame the high prices on nickel.

 

[IRstuff]

Pricing of just about any commodity has localized fluctuations that might not be fully reflected by the spot price. As an example, certain suppliers will take facilities offline when prices are low, which creates a localized shortage and high prices, even when, or particularly when, the global spot price is low.

TTFN

FAQ731-376

 

[EdStainless]

http://www.estainlesssteel.com/stainless-steel-news.shtml

This is the best site that I know of for tracking metal prices.

You should expect that the casting price will reflect current metal prices.
Keep in mind that while Ni has dropped Cr has gone up considerably.

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Plymouth Tube

 

[arunmrao]

macmet. The deciding or controlling factor of casting price is the price of Ni and Mo (if in significant amount). However,the price of Low Carbon FeCr has increased tremendously in the past 3 months. It is currently about 6-6.25USD/kilo,from a price 4 months ago of 2.5-2.7USD/kilo.

This factor might have upset the pricing for the foundry.Can you please give the price being charged by the foundry to you so that I can offer my comments. Please do remember I am a casting manufacturer for heat and wear applications .

Chocolates,men,coffee: are somethings liked better rich!!
(noticed in a coffee shop)

 

[macmet]

Arunmrao,

Our previous order was late last year and was ~$1200 CAD for a 126# casting. The latest order saw a price increase of about 6% to ~ $1275 CAD.

I have two specs for HH. One does not this Mo as a component of the alloy. The other says 0.5% but makes a note that the Moly is not added intentionally.

 

[IRstuff]

The month to month fluctuation on the spot price appears to be already more than 6%. This does not count the increase in cost for other things, like fuel.

TTFN

FAQ731-376

 

[arunmrao]

macmet,

What is the casting? Is there any machining involved? Your vendor must consider himself very lucky. If you were to consider my quote you would be pleasantly surprised.

A ball park price from me will be 15USD/kilo FOB. I can assisst you further if you desire.

Chocolates,men,coffee: are somethings liked better rich!!
(noticed in a coffee shop)