http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.63Change: -0.02
R/$ = 12.27Change: 0.00
Au 1168.64 $/ozChange: 3.32
Pt 1082.50 $/ozChange: -0.50
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Letters Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
May 28, 2010

Surging price of nickel 
impacts on price of nickel-containing grades of stainless steel

Back
Africa|Building|Marine|Petrochemicals|Stainless Steel|Africa|Petrochemicals|Products|Steel
Africa|Building|Marine|Petrochemicals|Stainless Steel|Africa|Petrochemicals|Products|Steel
africa-company|building|marine|petrochemicals-company|stainless-steel-company|africa|petrochemicals|products|steel
© Reuse this

The past two years have seen some 
frenetic activity in all commodities with speculation, supply interruptions, 
surges in demand, currency fluctuations and ballooning stocks having all contributed to an unpredictable market and often inexplicable price movements, says Durban-based manufacturer and distributor of stainless steel products Euro Steel, which is also a member of the Southern Africa Stainless Steel Development Association.

The pricing of austenitic stainless steel closely follows the cost of nickel owing to, in part, that, while nickel may make up a small percentage of stainless steel in mass (8% in grade 304), it contributes to 60% of the cost, reports the company, adding that, over the past two years to three years, the nickel price has increased to over $50 000/t and retreated to below $10 000/t.

The surging price of nickel impacted on the price of nickel-containing grades of stainless steel and this trend motivated end-users to 
explore other options, Euro Steel reports. This, in turn, gave rise to renewed interest in non-nickel-containing grades of stainless steel.

“There are options, and stainless steel is not as complicated as many people think. In layman’s terms, chrome is what makes steel ‘stainless’ (all stainless steels have a minimum of 11% chrome), nickel is added to help with the workability and to extend the 
ductility, and molybdenum can be added to improve the corrosion resistance. By adding nickel to ferritic stainless steel, it causes its structure to become austenitic and it loses its magnetism. This may not immediately appear significant, but one needs to consider that the majority of promotion, marketing and development of stainless steel, as a whole, has been funded and guided by the Nickel Development Institute (NDI),” Euro Steel states.

The NDI aims to promote the nickel-containing grades. “While there are occasional, almost 
reluctant, fleeting references to superior ferritic corrosion-resistance performances in a number of their publications, clearly the preference is given to the nickel-
containing grades (those that are nonmagnetic). 
“For years, the market has been indoctrinated into believing that magnetic is bad and nonmagnetic is good, which resulted 
in the majority of the market perceiving magnetic stainless to be less corrosion resistant, which it is not.”

Euro Steel CEO Colin Wilson says: “We are building up a substantial library of successful 
applications of these ferritic and duplex stainless applications in the fishing, catering, wine, petrochemicals, architectural and pulp and paper industries, and we are only too happy to research and advise on any enquiry.”


The company says that grade 444 stainless steel is an example of a chrome and molybdenum-containing ferritic (magnetic) stainless steel, which has superior pitting resistance compared with grade 316.
There are a number of applications where the 316 stainless steel grade is specified, and, in such 
instances, for example, applications are susceptible to stress corrosion cracking and are 
inappropriate.

Another family of stainless steel is called the duplex class, a mixture of austenitic (chromium-nickel stainless steel) and 
ferritic structures (plain chro-
mium stainless category). 
This combination, reports Euro Steel, offers more strength than either of the stainless steels mentioned, and provides high 
resistance to stress corrosion cracking (formation of cracks caused by a combination of corrosion and stress) and is suitable for heat exchangers, desalination plants and marine applications.

Although there has been an increased interest in low-nickel 
or non-nickel grades of stainless steel, one area of particular concern is the family of stainless steel known as the 200 series, a low nickel and reduced chrome-containing stainless steel, reports the company.

“Because the 200 series grades are austenitic, they are not magnetic and are, therefore, difficult to distinguish from the widely used 300 series grades, such as the 304 or the 316, which are also nonmagnetic. 
“This has led to cases of 201 stainless steel being sold as 304, resulting in confusion and corrosion failures in the marketplace, not to mention the adverse effects of scrap contamination and dilution,” says the company.

These issues can be catastrophic 
for the overall reputation of the industry, says Wilson.

Edited by: Brindaveni Naidoo
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Sassda News
The pressure is on local manufacturers to produce products in line with global standards that can compete with imported alternatives, states stainless steel casting manufacturer Steloy Castings.
Welding, cutting and gas products company Afrox will launch its new range of Vacuum packaging (DriPac) stainless steel welding consumables this year, which will be beneficial for operations in remote areas.
Abrasives manufacturer Klingspor says its advanced Germany-based research and development (R&D) department sets the company apart from its competitors, as it provides the stainless steel industry with technology that promotes efficiency in the manufacturing stage and...
More
 
 
Latest News
Port of Saldanha
Updated 15 minutes ago The Port of Saldanha would present investors with investment opportunities in excess of R13-billion over the next five years, business leadership organisation Accelerate Cape Town announced at its July Thought Leadership session. Feasibility studies are already under...
Updated 1 hour 47 minutes ago Output and new orders in South Africa's private sector declined at their sharpest rates in nearly a year as the economy weakened and demand subsided, a survey showed on Friday. South Africa's Standard Bank Purchasing Managers' Index (PMI) fell to 49.2 in June from...
Updated 3 hours ago Nigeria's Transcorp plans to spend $1.575-billion from 2016 to 2018 to raise its power generation capacity to 2 500 megawatts (MW) from 610 MW now, the company said on Thursday. Transcorp, which also has interest in hotels, oil and gas, said it expected the...
More
 
 
Recent Research Reports
Real Economy Year Book 2015 (PDF Report)
There are very few beacons of hope on South Africa’s economic horizon. Economic growth is weak, unemployment is rising, electricity supply is insufficient to meet demand and/or spur growth, with poor prospects for many of the commodities mined and exported. However,...
Real Economy Insight: Automotive 2015 (PDF Report)
Creamer Media’s Real Economy Year Book comprises separate reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, gold, iron-ore and platinum sectors.
Real Economy Insight: Water 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Construction 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Electricity 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Road and Rail 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
 
 
 
 
 
This Week's Magazine
NHLANHLA NENE The main constraints to economic growth are domestic
Finance Minister Nhlanhla Nene earlier this month stated that, while South Africa’s 2015 economic growth target of 2% was achievable, it was not enough to deliver the tax revenue needed to combat the country’s challenges.
The World Steel Association has published the 2015 edition of the World Steel in Figures report, which shows an increase in steel production as well as provides an overview of steel industry activities from crude steel production to apparent steel use.
The 25-year master plan for Gauteng’s Aerotropolis project will go through a process of approval and adoption during June and July, says Aerotroplis project manager Jack van der Merwe. “We are also in the process of putting together a special purpose vehicle (SPV) to...
SOLAR PANELS The existing buildings in the Coega Industrial Development Zone lent themselves well to rooftop solar panel installations
The Coega Development Corporation (CDC) plans to fit 15 of its buildings, totalling 127 000 m2 of roof space, in the Coega Industrial Development Zone (IDZ), in the Eastern Cape, with solar panels.
The Supreme Court of Appeal’s (SCA’s) November 2014 judgment, ordering steel producer ArcelorMittal South Africa (AMSA) to hand over the 2003 Environmental Master Plan for its Vanderbijlpark steel plant to environmental pressure groups, confirmed the right of civil...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks
Subscribe Now for $96 Close
Subscribe Now for $96