Tata Steel’s speciality steels division in UK has significantly reduced its alloy surcharges for August 2015, Kallanish learns from the company. The four major alloying elements of nickel, chromium, molybdenum and vanadium have all seen surcharges plummet by double digit percentages. The monthly alloy surcharges apply to Tata’s special carbon, alloy and spring steel semi-finished products, alloy and spring steel black bars, flats and rods and aircraft steel black bars.

The Tata nickel surcharge has fallen for July by -12.9% to £6.75 per 0.10% ($10.59 per 0.10%), the lowest level for several years. The surcharge for molybdenum falls by -37.1% or £3.25 to £5.50 per 0.10% and is now -68.1% lower than 12 months ago. The vanadium surcharge tumbles back to its May level of £7.00 per 0.10%, a reduction of -24.3%.

The chromium surcharge falls back to its January level of £1.60 per 0.10%, an -11.1% reduction month-on-month. The surcharges for silicon and manganese remain unchanged month-on-month at £0.45 per 0.10% and £0.25 per 0.10% respectively.

Tata’s monthly scrap surcharge tumbles heavily by £20/tonne for July to £106/t for August. Scrap values around the world have been falling steadily since the start of the Northern Hemisphere summer, not helped by a weak seaborne iron ore price and flattening steel production.

The scrap surcharge applies to special carbon, alloy and spring steel semi-finished products, non-alloy special steel black bars and flats, alloy and spring steel black bars, flats and rods, and free cutting re-rolling billets.