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Nicked by nickel: stainless recovers: following the collapse of nickel pricing and unprecedented worldwide liquidation of stainless inventories, specialty metals producers and distributors see healthy demand in most end-use markets going forward.

Publication: Metal Center News
Publication Date: 01-JUL-08 		Format: Online
Delivery: Immediate Online Access
Full Article Title: Nicked by nickel: stainless recovers: following the collapse of nickel pricing and unprecedented worldwide liquidation of stainless inventories, specialty metals producers and distributors see healthy demand in most end-use markets going forward.(SPECIALTY METALS OUTLOOK)

Article Excerpt
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WHEN THE BOTTOM FELL OUT of the nickel price in mid-2007, the results could have been catastrophic for the stainless steel industry. But as service center and mill executives survey the landscape after 12 turbulent months, they see an industry that escaped largely unharmed.

"After all the destocking the market went through in the second half of last year and the madness that ensued, you saw varying stories through the first quarter of this year," says Chris Zimmer, vice president of sales and marketing for Universal Stainless and Alloy Products, Bridgeville, Pa. "Now we're seeing some strong bookings and our backlog continues to grow every month.

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The 15-month run-up in nickel, during which the commodity jumped eightfold from its traditional $3 per pound price, came to a screeching halt in May 2007. Within a few months, the price of nickel dropped from its high of $24 to about $14 per pound. This caused the price of stainless alloys to plummet by 26 percent.

What followed was an unprecedented drawdown in stock levels. For the remainder of 2007, and through...

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