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| Japanese Export Offers Of Ni-Based Stainless CR Sheets At $2,700 C&F |
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Japan's stainless steel producers are contemplating offering a price increase of US$100/ton to US$2,700/ton C&F for nickel-based CR sheets in their export negotiations to start this week for August-September shipments to Asian destinations such as China. By comparison, Taiwan's stainless steel producers increased their domestic sales prices of Ni-based CR sheets last week by NT$2,000/ton (nearly US$60) for the grade 304. At the same time, they increased what they charge for export sales. Also, South Korea's integrated steelmaker Posco has raised its export prices of Ni-based stainless CR sheets until now. The Japanese steelmakers find themselves in enhanced inquiries from Asian destination for imports of Ni-based stainless CR sheets. As a result, they admit dwindling leeway to meet inflows of massive orders. Most of the inquirers are steel stockists and distributors that want to replenish what they hold in inventory. In China, major stainless steel manufacturers such as Taiyuan Iron & Steel Group Co (Tisco) are operating their works at capacity to meet existing orders for what they produce. It is understood that the orders in hand are more than production capacity by 20-30%. Therefore, Tisco has responded with a price increase of Yn300/ton each for Ni-based HR sheets as well as Ni-based CR sheets. As a result, the company's new asking prices after value-added tax are Yn20,420/ton (US$2,985) for Ni-based CR sheets and Yn19,200/ton (US$2,826) for Ni-based HR sheets. Also, the Wuxi stainless steel market has moved up to Yn20,300/ton after VAT for Ni-based CR sheets. As to chromium-based stainless CR sheets, Tisco has executed a domestic price increase of Yn300/ton to Yn10,320/ton (US$1,518) after VAT for the grade 403. For the downside of China's stainless steel market conditions, however, local distribution stocks are on the increase. In the case of the Wuxi area, the stocks totaled 149,000 tons (74,000 tons as CR sheets and 75,000 tons as HR sheets) at the end of June, up 19,000 tons from the end of May. There is a possibility that if the stocks continue to rise, they will become a burden on domestic transactions of stainless steel. Besides, it is uncertain whether the existing orders for stainless steel stem from actual demand because end users such as utensil manufacturers are still operating at 60% of capacity. In Europe, meanwhile, Germany's Thyssen Krupp Stahl AG is reported to have increased the base price of Ni-based stainless CR sheets by 200 euros to 1,300 euros/ton. As a result, the company's new sales price translates into a level of US$2,900/ton. In the USA, the going stainless steel prices are seen as a level of US$2,600/ton for products from major manufacturers such as AK Steel Corp. |
| last modified : Fri 10 Jul, 2009 [11:32] |
