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|Price Recovery Of Ni-series Cold Stainless To Be Carried $3,000 Level Over Next Year|
Prices of Ni-series cold-rolled stainless steel sheets in the Asian area are foreseen to be carried forward to the following year without recovery of the level of $3,000 C&F, and to recover to the mark after the New Year.|
Seeing the overseas market in Asia, their prices of Korea's POSCO and Taiwan's YUSCO are $2,800 C&F, and those of the Japanese mills are $2,900 C&F. The reaction of customers is that they are increasing inquiry quantities, and setting out for inventory replenishment of 3 months or so recognizing bottoming out of the present market. However, the market prices are controlled by the Korean and Taiwanese mills.
As the LME price of nickel has risen to the low $8.00's per pound in December from the high $7.00's in November, the mills are to carry out price increase by $100 or so. However, as distributors' prices are still cheaper than those of the mills of each country, each customer has no reaction yet against movement of price increase by a mill.
Possibly for this reason, Taiyuan Iron and Steel (TISCO) of China is watching the market even as at 26th despite that the company usually releases its domestic prices for January shipment in late December. POSCO and YUSCO seem to notice their prices within this week.
POSCO has kept its domestic prices the same since October shipment. During this time, there was a movement that nickel price dropped and rebounded. In order to adjust this fluctuation, POSCO is inevitable to increase its prices in January shipment. The Taiwanese mills will notice its price increase as their prices link immediately to a nickel price. TISCO also seems to move to increase its prices but to be difficult to increase its price by $100 in dollar volume.
The Japanese mills seem to have raised their offer prices to $3,000 C&F. However, conclusion of a contract is likely severe. It is because it is the present situation that a customer which is not satisfied with quality of the Korean and Taiwanese mills is insisting on $2,900 C&F.
However, every year, the market prices of cold stainless sheets go up from the new year to before and moreover after the Chinese New Year. It will be certain for the market to move on to price increase this time too as inquires are increasing. The problem is whether the environment becomes to accept $100 increase. If rapid increase is difficult, the mills will wait patiently till the end of the Chinese New Year without cutting their prices.
|last modified : Fri 06 Jan, 2012 [10:50]|