TK Stainless

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Alloy prices again significantly affected customer behavior. Having reached an all-time high in
mid-2007, the nickel price declined sharply and by mid-March 2008 had stabilized at a relatively low
level of 27,000 – 33,000 US dollars per ton, which initially had a positive impact on demand. A renewed
downward trend from early May caused stainless customers to once again adopt a wait-and-see
approach. By contrast, chromium prices climbed substantially due to the scarcity of global supply.
Whereas for chromium-nickel steels (austenitics) this increase was offset by the lower nickel price, the
rising price of both chromium and steel scrap had a noticeable impact on chromium steels (ferritics).
The alloy surcharge for these grades increased by more than 100% in the reporting year.
In the NAFTA region, the general weakness of the economy subdued demand for stainless steel,
leading to a decline in volumes and base prices. In China and other Asian markets, demand for stainless
steel products remained high, but high inventories and overcapacities at producers prevented an
improvement in prices, which were down from the prior year.
In the market for nickel alloys, the initial rise in alloy prices and the strength of the euro against
the US dollar negatively impacted the competitiveness of European producers. In addition, competitors
with production facilities in the US dollar zone increasingly forced their way onto the European
markets. Demand in the European chemicals industry remained stable to slightly positive in line with
expectations. In the oil and gas industry, the previously lively level of inquiries dropped sharply and
planned projects were slow to get off the ground.
Increasing capacities at titanium producers and a temporary decline in demand for titanium
products, especially in the aerospace sector, led to a marked change in the situation on the market.
The supply problems of aircraft manufacturers Boeing and Airbus and the oil price situation also had
a negative impact. By contrast, the market for industrial applications is relatively stable.
Stainless steel scrap is fed back
into the production process.
EBOR Edelstahl in Sachsenheim delivers products
tailored to customer requirements.