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| China's Stainless CR Sheet Market Enters $5,000/Ton Era |
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China's stainless steel market for CR sheets has entered an era of deals at US$5,000/ton in the wake of a domestic price increase by Ningbo Baoxin Stainless Steel Co last week, according to information made available in Tokyo. The company raised the asking price for nickel-based stainless CR sheets by Yn2,700/ton (US$346). As a result, the new price is estimated at a level of US$5,100/ton before tax for the product of 0.5mm thick. With an unrelenting upswing in the world's nickel prices, chances are various stainless steel manufacturers in China will execute more price increases in domestic shipments of Ni-based stainless CR sheets. In South Korea, integrated steel giant Posco priced up Ni-based stainless CR sheets by W240,000/ton (US$258) in late February for domestic sales. Ningbo Baoxin's and Posco's domestic price increases took effect as the passalong to meet a surge in nickel prices. It is understood that nickel costs advanced by US$600/ton or more in China and South Korea between January and late February. But local price increases in effect for Ni-based stainless CR sheets stand at a level of US$250-300/ton, a situation where export sales are bound to incur deficits. As a result, there are forecasts that Posco and China's stainless steel manufacturers will opt for more domestic price increases of Ni-based stainless CR sheets. In this connection, Taiwan's stainless steel rerollers look set to hold back on their export deals for shipments in the April-June quarter until Posco and the Chinese stainless steel producers execute more price increases at home. Likewise, Japan's stainless steel producers are marking time on what they negotiate as new exports of Ni-based stainless CR sheets to the rest of Asia. They see an environment in which they will have to offer price increases of US$600-700/ton to a level beyond US$5,000/ton FOB in their export deals for Q2 shipments. |
| last modified : Fri 09 Mar, 2007 [14:42] |
