[Price Report] Stainless Steel : 304, 304L, 309, 309S, 310, 310S, 316, 316L

February 03, 2025 – February 07 Alloy Price Analysis. This week’s analysis includes a detailed look at ferrochrome price trends.

Ferrochrome (Fe-Cr) and Stainless Steel Alloys: Price Surge and Market Outlook for 2025

The global market for ferrochrome (Fe-Cr) and stainless steel alloys is witnessing significant price movements. Industries are responding to rising demand. Key alloys like 304, 304L, 309, 309S, 310, 310S, 316, and 316L have seen price fluctuations. This is mainly influenced by the alloying elements, including the crucial iron-chromium (Fe-Cr) in both high-carbon (HC) and low-carbon (LC) forms.

Stainless Steel Alloys See Price Increases in Key Grades

Prices for several stainless steel grades have risen in recent days. This reflects the ongoing growth in sectors like automotive, construction, and infrastructure. Here’s a breakdown of the price changes for major stainless steel alloys:

• 304 and 304L alloys: The price of 304 has increased by $0.08, from $2.01 to $2.09 per kilogram. In comparison, 304L has increased by $0.03, from $2.38 to $2.41 per kilogram. These alloys are similar in composition, but differ by the amount of Fe-Cr. 304 contains 17% Fe-Cr (HC) and 304L contains 18% Fe-Cr (LC).

• 309 and 309S alloys: 309 is up $0.15 to $2.72 to $2.85 per kilogram, and 309S is up $0.06 to $3.17 to $3.23 per kilogram. These alloys are similar in composition but differ in the amount of Fe-Cr. 309 contains 23% Fe-Cr (HC) and 309S contains 23% Fe-Cr (LC).

• 310 and 310S alloys: The price of 310 has increased by $0.19 to $3.92 to $4.11 per kilogram; 310S has increased by $0.12 to $4.40 to $4.52 per kilogram. 310 contains 25% Fe-Cr (HC) and 310S contains 25% Fe-Cr (LC).

• 316 and 316L alloys: 316 is now priced at $3.25 to $3.36 per kilogram, an increase of $0.11. 316L is now priced at $3.58 to $3.63 per kilogram, an increase of $0.05. 316 contains 17% Fe-Cr (HC) and 316L contains 17% Fe-Cr (LC).

The difference in pricing primarily stems from the Fe-Cr content, with ferrochrome price trends for Fe-Cr(HC) seeing an increase of $0.27, now ranging from $2.75 to $3.02 per kilogram. Meanwhile, Fe-Cr(LC) is priced at $4.70 to $4.65 per kilogram, down by $0.05.

Fe-Cr Market Growth: An Expanding Industry

The Fe-Cr market is expected to grow substantially in the coming years. Projected to rise from $20.3 billion in 2024 to $33.6 billion by 2032, the market will experience a compound annual growth rate (CAGR) of 6.5%. Several key factors contribute to this positive outlook:

• Rising Demand for Stainless Steel:
  Stainless steel continues to play a pivotal role in industries such as automotive, construction, appliances, and infrastructure. Demand is particularly high in emerging economies like China and India.
• Technological Advancements:
  New production techniques and energy-efficient processes are expected to reduce costs and environmental impacts, further driving Fe-Cr demand.
• Increased Use Across Various Alloys:
  Fe-Cr is not only a crucial component of stainless steel but is also used in other alloy production. This broadens its scope and increases overall demand.

Asia Pacific remains the largest consumer of Fe-Cr, accounting for more than 55% of the global market. China and India, in particular, continue to drive demand across sectors like automotive, construction, and manufacturing. Meanwhile, Europe and North America also show growing demand, particularly in automotive and infrastructure.

Fe-Cr Price Dynamics: Factors at Play

The price fluctuations for Fe-Cr are shaped by several factors, including industry demand, regional supply conditions, and production capacity.

• Fe-Cr(HC) Price Trends:
  As demand for stainless steel rises, particularly in automotive and infrastructure sectors, the price of Fe-Cr(HC) has increased. Major producers like Glencore have ramped up production to meet demand. This helps to address supply shortages while maintaining upward pressure on prices.
• Fe-Cr(LC) Price Trends:
  In contrast, the price of Fe-Cr(LC) has declined due to oversupply and weaker demand from specialized industries such as aerospace and defense. An increase in Fe-Cr(HC) production has created a surplus of Fe-Cr(LC), contributing to the downward pressure on prices.

Future Price Outlook

Looking ahead, ferrochrome price trends are expected to follow the demand trajectories in key industries:

• Fe-Cr(HC):
  Prices for Fe-Cr(HC) are likely to continue rising due to sustained demand from stainless steel producers. This is especially true in emerging markets and infrastructure development projects.
• Fe-Cr(LC):
  Fe-Cr(LC) prices may see a recovery as demand from industries like aerospace and defense picks up. This could reverse the current downtrend.

Prices for key stainless steel grades, such as 304, 304L, 309, 309S, 316, and 316L, will likely fluctuate alongside these trends. As industries like automotive, construction, and infrastructure remain strong, further price adjustments are expected in the coming months.