Tata Steel’s UK speciality steels division has either increased or left unchanged its monthly alloy surcharges for April 2016, Kallanish notes. Those for nickel, molybdenum and cobalt have all risen. The scrap surcharge for April meanwhile has recovered significantly and back to a level not seen since September 2015.

Surcharges for chromium, vanadium, silicon, manganese and titanium all remain unmoved month-on-month. 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 increases by 12.5% month-on-month for April to £4.50 per 0.10% ($6.48 per 0.10%). That for molybdenum also rises by 6.2% to £4.25 per 0.10%. The surcharge for cobalt upticks by 8.0% to £6.75 per 0.10% after last month’s all-time low of £6.25.

The surcharge for chromium stays at a relatively low £1.35 per 0.10%. Vanadium also remains static on-month at £2.00 per 0.10% following its January/February surge. Surcharges for silicon and manganese remain unchanged at £0.20 per 0.10% and £0.10 per 0.10% respectively. Titanium also remains at its all-time low of £1.00 per 0.10%.

Tata’s scrap surcharge however surges back to £83/tonne for April, from an extremely weak £45/t reached in March. As raw material values begin once again to rise globally, then steelmaker margins have an opportunity to improve once again.

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.