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Price Rise Negotiations on Ferritic Stainless Sheets to Be Inevitable to Bog Down
The Japanese mills of ferritic stainless steel sheets are on track to ask for a price rise of ferritic stainless sheets in order to absorb price hikes of chrome and predicted to make full-fledged negotiations soon. Some mills already offered a price rise while other plural mills are in a stage to study their quotations and are in a stance to embark on the price rise negotiations by $70 or so as early as after the consecutive holidays.

The preliminary skirmish over such price increase has already begun, and considering customers' reaction against the mills till now, negotiations will be inevitable to bog down. It is because at present, customers in China to which the Japanese mills are mainly supplying ferritic stainless sheets have rather strong intention of price down instead of acceptance of price increase derived from a rise in chrome prices. The customer side is saying that the market prices of ferritic stainless sheets are apt to move in tandem with those of austenitic stainless sheets in China. At present, prices of austenitic ones which might become below $2,600 CFR are dropping by dragging down by a fall in the LME nickel prices.

Accordingly, customers of China are insisting that prices of ferritic sheets should be also reduced, and they seem to have been reacting sharply against the price rise of ferritic ones by the Japanese mills.

A source is thinking that price increase of ferritic ones for general use (430) are difficult and very difficult especially in the spot market. However, so-called tied contracts on the Japanese ferritic stainless sheets with specific customers are many. For this reason, it is considered being possible to increase their prices if the mills explain well that they will increase prices in order to absorb price hikes of chrome, and therefore, each mill is in the direction to persuade them with time and care.
last modified : Tue 30 Apr, 2013 [15:40]
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