The TEX Report Topics < Steel > Home
HOME >> Topics List >> May, 2015 >> 28 (Thu)
Asian Customers in Wait-and-see Stance for CR Austenitic Stainless Sheets
As the LME nickel price is again falling to the level of $5 per pound, customers in the Asian region would not relax a wait-and-see attitude. Under the circumstances, attention is paid to whether Chinese mills' price increase of CR stainless sheets for July shipment was accepted or disappeared.

When the nickel price rose in early May, prices of cold-rolled (CR) austenitic stainless steel sheets had been seen to bottom out at around $2,150 CFR. It is said that inquiries increased and contracts were seen to some extent. However, as thereafter, the nickel price dropped, customers have maintained a wait-and-see attitude and have not replied to offers. In this period, Taiyuan Iron & Steel, Baoshan Iron & Steel and so on in China offered an increase in export prices by $100 for July shipment.

Chinese mills are now leading the market prices, and even if Korean and Japanese mills raise their prices, it in a situation that customers will not accept such price increases. Accordingly, if Chinese mills' price increase by $100 is accepted, the Japanese mills are in a stance to set out an increase in pries immediately following it. The domestic prices for June of Chinese mills having raised their domestic prices slightly for May shipment and Taiwanese mills also attract attention. It is because there is a possibility for them to recover their prices due to a recovery in price of nickel at one point in time. Attention is also paid to whether they set out a price policy to cease a further fall in prices.

The European Commission provisionally determined to be affirmative on an antidumping (AD) case against CR stainless sheets imported from China and Taiwan. For this reason, CR sheets of both countries had been concerned to flow back to the Asian region. As Taiwan's AD duties are 10.9%-12.0% being less than half of China's 24.3%-25.2%, Taiwan is reported to have resumed export by splitting the burden in half with customers. Therefore, back-flow will be reduced to that extent.

Besides Chines mills' movement, what stainless steel mills are concerned about is the fact that Outokumpu is offering its products for China and Korea. The company is reported to be offering its sophisticated products and high-nickel ones at cheap prices armed with the weak Euro. The Japanese mills are concerned that their important field to secure earnings may be disturbed.
last modified : Tue 02 Jun, 2015 [09:53]
Copyright (C) 2004 The TEX Report Ltd. All Rights Reserved.