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| Inquiries Recover To Normal Level In Japan's Ni-Based Stainless Exports |
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Japan's stainless steel manufacturers see the recovery of inquiries to a normal level in their deals of nickel-based CR sheet exports to the rest of East Asia. The current inquiries originate from China, Hong Kong and Taiwan. In East Asia, market prices of Ni-based stainless CR sheets for export have advanced further until now. As a result, a price increase of US$300/ton has begun to take hold as compared with the price level at the beginning of April. Besides, the going prices are on track to a level of US$2,300/ton FOB. Aware of a favorable situation, the Japanese steelmakers look set to offer a price increase of US$50/ton or more in their export deals for July shipment. The Japanese steelmakers enjoyed inquiries on the increase in April. Since then, inquiries have further increased both in number and quantity, which amounts to a flood of requirements. There are even moves for hasty purchases by various buyers in Hong Kong and Taiwan, where few distribution stocks exist for stainless steel products. Therefore, the existing inquiries indicate the recovery to what occurred before September last year when inquiries plunged both in number and quantity. In China, major stainless steel producers such as Taiyuan Iron & Steel Group Co (Tisco), Baosteel Group Corp and Zhangjiagang Pohang Stainless Steel Co are thought have embarked on full operations of their works in the wake of an improved market environment for Ni-based CR sheets. Ni-based stainless sheet production by the nation's five major stainless steel producers totaled 283,000 tons in April, of which CR sheets accounted for 227,000 tons. The five companies' combined production capacity is viewed as 260,000-270,000 tpm. Among China's stainless steel majors, Tisco has increased its sales price of Ni-based CR sheets by Yn700/ton (US$103) to Yn18,120/ton (US$2,665) after value-added tax for the price renewal this week. As a result, the company's price increase has hit a cumulative Yn1,100/ton (US$162) for two weeks, an increase of as much as Yn2,700/ton (US$397) in comparison with the April level. Also, the Wuxi stainless steel market for Ni-based CR sheets has advanced by Yn2,600/ton (US$382) so far from the April level. Prices of Ni-based stainless CR sheets are on the rise in the West as well. In Europe, local transactions are subject to a price increase of 200 euros/ton after a revision of the base price and an increase in the alloy surcharge. It is understood that a price increase of 150 euros has already taken hold. In the USA, there are moves afoot for a base price increase of US$100/ton besides an alloy surcharge. Meanwhile, prices of chromium-based stainless CR sheets in East Asia are seen as distant from a recovery even though a reviving auto industry is reported for a main consuming sector for Cr-based stainless CR sheets. At present, inquiries continue stagnant in a quiet market. |
| last modified : Wed 20 May, 2009 [10:47] |
