Inconel Price Trend and Forecast

Regional Market Overview

Get the latest insights on price movement and trend analysis of Inconel in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East & Africa).

Inconel Price Trend for the Q1 of 2024

Asia

In 2024, the global inconel market faced uncertainty regarding a potential rebound in Chinese nickel purchases. Increased production in Indonesia and China lead to a surplus, potentially driving prices down in the early phase of the first quarter. Last year's oversupply, resulting from Indonesia's export ban, led to a significant market shift and subdued dynamics of the downstream market during Q1 of 2024.

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Indonesia's dominance in inconel production continued to pose challenges, prompting discussions of potential production cuts in China and Indonesia to counter falling prices. However, as the quarter progressed, the situation changed rapidly as Indonesian smelter stockpiles depleted, leading to a supply deficit by the end of the quarter.

Additionally, Australia's inconel industry faced challenges due to a collapse in global nickel prices, prompting BHP to consider placing its Nickel West division in long-term maintenance. The global price dropped due to increased supply from Indonesia, mainly from Chinese-owned mines. Australia, thus recognizing the strategic importance of inconel and other critical minerals, granted access to federal funding and royalty relief. Australia also thus looked forward to diversifying processing chains and establishing partnerships with other nations. However, challenges persisted, including China's influence and the need for domestic processing capacity.

Europe

The European inconel market experienced a significant surge in trading volume during the first quarter of 2024, with notable increases across various contracts compared to the previous quarters. Particularly noteworthy is the rebound in trading activity on the inconel, following disruptions that halted trading during Q4'23.

Despite this setback, nickel trading showcased resilience, contributing to the overall increase in trading volumes on the LME. Additionally, the disruption of Red Sea and Suez Canal routes due to the ongoing Houthi attacks on the shipments and lowering of water levels, respectively, limited the export and import volumes of the commodity in the region, extending the uncertainties of the inconel price trend during the first quarter of 2024.

North America

The US imposed sanctions on numerous entities in Russia, excluding its base metals industry, leading to a fluctuation in inconel price trends. However, prior to this announcement, nickel and inconel prices surged on assumptions of supply limitations due to potential sanctions. However, the market behaved opposite to the expectations of the traders resulting in oscillations in its pricing patterns.

The manufacturers then started to focus on demand-side concerns of the market, including challenges in China's macro backdrop, although the oversupply of the inconel in the market still persisted. Although Russian base metals initially avoided Western sanctions, the US's restriction on acquiring Russian-origin metals has complicated trading not only there but also in the domestic markets of the US as the market players started to search for alternatives.

Analyst Insight

According to Procurement Resource, the price trend of Inconel is expected to oscillate in the forthcoming quarters with the changing dynamics of metal trade between the industry giants.

Inconel Price Trend for the October - December of 2023

Asia

The bloom in Indonesian mining activities and the rise in their procurement of nickel and other metals resulted in an oversupply of inconel during the initial phase of the last quarter of 2023. However, the region lacked consumption, and with cautionary export to overseas players, the inconel price trend oscillated.

In the latter half of the quarter, Indonesia delayed mining output as it struggled with illegal mining activities. As the market faced supply shortages, steel producers from a number of nations turned to the Philippines for nickel ore, further hampering the inconel price trend. Additionally, weakened inconel demand also resulted from China's economic struggles, primarily in its real estate sector.

This downturn in the Chinese property market led to deflation and several economic challenges whose effect was not only limited to the nickel industry but could be seen in the slowing down of the EV batteries sector.

Europe

The Inconel industry in European countries is regulated by only a few numbers of producers as the domestic demand is well catered for by their production capacities. However, as the industrial sector around the globe has started ditching traditional fuels and has shown considerable interest in the EV batteries sector, the region looked forward to increasing its consumption of nickel and, in turn, inconel.

However, the outlook of automotive and other related downstream sectors did not work in favor of inconel market trend, and as a result, the inconel price trend remained uncertain throughout the fourth quarter of 2023.

North America

The fast-paced battery metals industries seemed to have lost their momentum in the last quarter of 2023 as the surge in supply rates outpaced the demand. Further, the depreciation in the cost of nickel and crude oil during this time also played a significant role in keeping the inconel price trend in the negative zone.

Additionally, the manufacturing sector also seemed under the pressure of an excessive rise in the cost of other industrially exclusive metals such as lithium, which slowed down the pace of growth and thus hampered the surge in inconel price trend.

Analyst Insight

According to Procurement Resource, the price trend of Inconel are expected to inch lower in the upcoming quarter as the global industrial bloom, especially in the automotive sector, will take a little longer to show its effect on inconel prices.

Inconel Price Trend for the July-September of 2023

Asia

Inconel, the superalloy of nickel and chromium, is usually used for mechanical manufacturing of high sophistication like aerospace components, gas turbines, powerplants, nuclear reactors, etc. So, the Inconel market trend are heavily dependent on the consumption by these downstream sectors. The quarter three of 2023 started on a lower note for Inconel.

The long economic and social battle during the peak COVID years put all industrial activities at a standstill. So, when the pandemic restrictions eased last year, the various industrial sectors aimed for a quick return to pre-COVID glory, particularly in China. However, the ingrained fear of social contact kept the pace of market recovery very restricted. And to further complicate the situation, the hikes in global inflation disturbed the international demand outlook as well. So, with feeble demands from both domestic and international markets, the Inconel prices wavered at the lower side of the curve during the given period. An excess of supplies accumulated in inventories over time also pushed the Inconel market trend down. Overall, muted market sentiments were observed.

Europe

Since mechanical manufacturing, especially from the automobile sectors, finally picked up in Europe after a long time since the beginning of the Russia-Ukraine conflict, the market demands for Inconel also rose. This eventually led to an elevation in the Inconel price graph in Europe. Overall, a largely positive market outlook was experienced.

North America

The American Inconel market was heavily influenced by the Asian market since the price trend observed persistent depreciation attributed to the existing supply glut and feeble demands. Overall, bearish market sentiments were observed.

Analyst Insight

According to Procurement Resource, a mixed market dynamic is anticipated for Inconel going forward since both demand and supply outlooks remain uncertain.

Inconel Price Trend for the the First Half of 2023

Asia
                
A mixed trend in the prices of Inconel was observed in the first two quarters of 2023. Initially, the market was significantly affected by the lower production rates due to the onset of the Chinese Lunar New Year holidays, but within the subsequent months, the prices of raw materials inclined that had a positive influence on the price trend of Inconel. However, in Q2, the prices began to decline due to falling raw material costs and reduced demand from the propeller blades and motor sectors.

Europe

The European region witnessed a rise in the demand for raw materials used in Inconel production which drove their prices that in turn had a positive influence on the market of Inconel. Along with this, the increase in demand from overseas buyers, a stable trend in energy production costs, and optimistic sentiments of the European market fueled the growth of the Inconel market in a positive direction.

North America

A stable trend in the prices of Inconel was observed in the North American region. The market for Inconel was affected by the falling spot premiums, dwindling raw materials costs, and fluctuating market sentiments. In addition to this, the purchasing potential of the buyers was also stagnant, and the rising interest rates further added pressure on the Inconel prices.

Analyst Insight

According to Procurement Resource, the price of Inconel is expected to remain uncertain in the upcoming quarter. Given the current trading environment, the demand sector and oscillating costs of raw materials will likely affect the Inconel market.

Procurement Resource provides latest prices of Inconel. Each price database is tied to a user-friendly graphing tool dating back to 2014, which provides a range of functionalities: configuration of price series over user defined time period; comparison of product movements across countries; customisation of price currencies and unit; extraction of price data as excel files to be used offline.