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|Negotiations on CR Austenitic Stainless Sheets Start Next Week for Feb Shipt|
The Japanese stainless steel mills are expected to commence negotiations on cold-rolled (CR) austenitic stainless sheets for February shipment from next week. As the robust domestic demand has returned, they are in a stance to proceed with export negotiations selecting orders as in the past.|
The yen is depreciating. They were in a difficult state to proceed with export negotiations at $2,500 CFR because of the price difference from prices of overseas mills. At the current exchange rate of 120 yen to the dollar, $2,500 is equivalent to 300,000 yen which is the similar level to the domestic prices. If the export prices become more than $2,550, they are in a position to be able to proceed with export negotiations more aggressively than before.
Korea's POSCO raised its domestic prices by 100,000 won for December shipment, which recovered a price decrease in November. China's Baoshan Iron & Steel also lowered its prices by 1,000 CNY ($163) for November shipment and raised them by 700 CNY ($114) for December shipment. Both companies returned their prices responding to a price recovery of the LME nickel price to the level of $7 per pound.
As the nickel price has recovered, offer prices below $2,400 CFR disappeared in the Asian region. There is a possibility for Chinese mills to raise their offer prices by more than $50 as early as this week. It is because as the domestic market price rose by 1,000 CNY to 16,900 CNY ($2,748, including tax) per ton, they are likely to raise their export prices too. It is thought for inventory of nickel pig iron to be decreasing, so it seems to lead to a rise in domestic prices in China.
The market prices begin to rise but customers show no sign to move toward inventory replenishment. Their wait-and-see attitude has continued. Therefore, the situation will pass over almost with no upsurge before the Chinese New Year.
The problem is that the European Commission will impose provisional antidumping margins on CR austenitic stainless sheets of China and Taiwan as early as January. When export from both countries is halted, their products are likely to be left unshipped in China or diverted to Southeast Asia. If so, a price rise of CR stainless sheets will not be expected.
|last modified : Thu 18 Dec, 2014 [10:19]|