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|East Asian Stainless Market At $3,300 C&F For Ni-Based CR Sheets|
The going stainless steel market for export deals of nickel-based CR sheets stands at US$3,300/ton C&F for the product of 2mm thick in East Asia where transaction prices of Ni-based stainless CR sheets have further advanced for the past one week. |
By comparison, transaction prices of chromium-based stainless CR sheets went up last week in East Asia, an increase for the first time in nearly a half year, in the repercussions of domestic price increases for Cr-based stainless CR sheets in South Korea, China and Taiwan. Those price increases were W150,000/ton (US$133) by South Korea's integrated steelmaker Posco, Yn350/ton (US$51) by China's stainless steel manufacturer Taiyuan Iron & Steel Group Co (Tisco), and NT$2,500/ton (US$76) by Taiwan's stainless steel mills.
In South Korea, Posco has increased its domestic sales price of Ni-based stainless CR sheets by W300,000 (US$265) to W3,820,000/ton (US$3,380) from April shipments. Posco is thought to have executed the price increase on the condition of LME nickel prices at a level of US$10/lb. The LME nickel market is forecast to hit a level of US$11/lb sooner or later. As a result, it is likely that Posco will execute a more domestic price increase of Ni-based stainless CR sheets in the near future.
In China, Tisco raised its domestic sales price of Ni-based stainless CR sheets by Yn500 (US$74) last week to Yn25,620/ton (US$3,768) after tax. Likewise, Taiwan's stainless steel producers increased what they charge for Ni-based CR sheets last week by NT$5,000 (US$152) to NT$106,000/ton (US$3,220), the new sales price to cover domestic shipments in early April.
Under the existing circumstances, the new domestic prices of Ni-based stainless CR sheets in South Korea, China and Taiwan are on track to an alignment for the equivalent of around US$3,300/ton.
Accordingly, it is natural for Japan's stainless steel manufacturers to pull up offer prices to a level of US$3,300/ton C&F in their export deals of Ni-based CR sheets for shipments to the rest of East Asia. Besides, they are expected to shorten the term of validity by one day to two days from this week in what they offer for export sales. There is even a possibility that they will offer a higher price level of US$3,400/ton C&F this week.
Transaction prices of Ni-based stainless CR sheets are on the advance in the West as well. In Europe, stainless steel producers have increased the nickel surcharge by 256 euros on the basis of a nickel price at US$9.90/lb. As a result, the new prices of Ni-based CR sheets for April shipments stand at around 2,710 euros/ton, prices that translate into a level of US$3,600/ton. Likewise, the new prices of Ni-based CR sheets in the USA have moved up to a level of US$3,500/ton for April shipments after an increased nickel surcharge on the basis of a nickel price at US$8.60/lb. Also, there are prospects that US stainless steel producers will execute another increase of US$300/ton in the nickel surcharge for May shipments, leading to a higher price level of US$3,800/ton for Ni-based CR sheets.
Meanwhile, China enters the demand season for stainless steel utensils from April onward. As a result, there are cases of speculative demand arising. In this connection, it is understood that the USA's importers have few stocks of bought-in stainless steel utensils on the whole at present because they held back on purchases from China last year. As a result, it is a matter of attention what amounts of utensil orders the US importers will place with Chinese suppliers at a May opening of China's Guangzhou trade fair in Guangdong province.
|last modified : Thu 08 Apr, 2010 [10:31]|