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|Asian Prices of CR Austenitic Stainless Sheets Come Close to Bottoming Out|
The movement of the LME nickel price is lately stable even at the low level of $6.10 to 6.20 per pound. The stainless sales departments of the Japanese mills have an expectation of a possibility that prices of cold-rolled (CR) stainless steel sheets will bottom out if the nickel price goes on stabilizing.|
The stainless steel mills are observing that less movement of the nickel price is caused by substantial shrinkage of the price difference between the LME nickel and China's nickel pig iron. At that point in time last year when the LME nickel price was $16,000 per ton (the level of $13,800 as at July 17), the cost of nickel pig iron was reported to be $15,000 per ton. As China's nickel pig iron does not flow overseas, it is impossible to grasp its accurate cost but as the LME price dips largely below $15,000, it is seen to come close significantly to the nickel pig iron prices. For this reason, it is said that the movement of the LME nickel price is thought to be lessened.
If the nickel pig iron prices are presumed to be similar to the LME price, the Chinese stainless steel mills are also thought to be operating with a substantial deficit. Accordingly, the Chinese mills are to enter the environment that they will not be able to reduce their prices any more.
Prices of CR austenitic stainless steel sheets have been affected by the LME price. If the movement of the LME price goes on lowering, a possibility of bottoming out of CR austenitic stainless sheet prices is raised at long last.
Taiyuan Iron & Steel of China is reported to have reduced its price of CR austenitic ones for Korea by $300 for August shipment. Its price is said to be $2,300 FOB, and attention is paid whether it forms a bottom price in the Asian region as the price being cut no more.
|last modified : Thu 25 Jul, 2013 [13:35]|