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| Japanese Export Offers At $2,800 C&F For Ni-Based Stainless CR Sheets |
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Japan's stainless steel producers are contemplating offering a price increase of US$150 to US$2,800/ton C&F in their export deals of nickel-based CR sheets for September-October shipments to Asian destinations, mainly to China. They are expected to start their export negotiations with local customers next week. For the price increase to offer, the Japanese steelmakers are taking account of two main factors. First, China's major stainless steel manufacturer Taiyuan Iron & Steel Group Co (Tisco) have executed a major domestic price increase for Ni-based CR sheets. Second, European stainless steel producers, too, have executed a considerable price increase each in what they sell. Tisco has increased its sales price of Ni-based CR sheets this week by Yn1,000/ton (US$147) to Yn21,920/ton (US$3,224) after value-added tax. The new price indicates an advance of as much as Yn6,500 (US$956) from a low of Yn15,420/ton (US$2,267) after VAT in the first week of April. The pace of Tisco's price increase has accelerated since June, with a cumulative increase of translating into US$600/ton in two months. It is strong domestic demand in China that permits Tisco's major price increase. Local users find it increasingly difficult to secure what they require as Ni-based stainless CR sheets even though five stainless steel majors including Tisco are operating their works at capacity. The five stainless steel majors' combined production totaled 573,000 tons in June, of which CR sheets accounted for 220,000 tons, and HR sheets 353,000 tons. As a result, their production in June was close to three time as much as what they put out in April. For an indicator of China's stainless steel stocks, ones in the Wuxi area totaled 166,000 tons in late July, up from 130,000 tons in June. But there are no signs of surplus stocks in the Wuxi area. Besides, the Wuxi stainless steel market has advanced to Yn21,600/ton (US$3,176) after VAT until now. In Europe, meanwhile, various stainless steel producers have executed a considerable price increase each in what they sell. As a result, the going prices of Ni-based CR sheets by the ton stand at a level of 2,150-2,200 euros (US$3,030-3,100) after separate increases in the base price and in the surcharge. Spain's Acerinox SA is said to have raised its operations from 50% to 75% of capacity. Also, Finland's Outokumpu Oy is reported to have sold out its production up to October. |
| last modified : Tue 04 Aug, 2009 [09:51] |
