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Prices of CR Austenitic Stainless Sheets in Asia Head for Double Dip
In the Chinese Wuxi market, cold-rolled (CR) austenitic stainless steel sheets got the price of 14,000 CNY per ton this week. That is equivalent to $2,258 including tax and $1,929 excluding tax. The price of CR austenitic stainless sheets to have dipped below $2,000 was the world's first. In the export market, prices of them are said to be nominally $2,100-2,150 CFR but if it comes to negotiations, the price is foreseen to dip below $2,050. As the case may be, a case to dip below $2,000 is seen to appear, and there is a strong possibility for the price to head for a double bottom.

The Japanese CR stainless sheets mills have not mostly proceeded with negotiations with other customers than them with a long-term business relationship and are likely any moment to be forced to withdraw from the spot market. It is in a state for inquiries from the spot market almost not to be sent to each mill. To a small extent, orders of second grade products have been placed from the Indian market. In India, a safe guard investigation was conducted before but turned down as no harm. However, there is information that India will conduct an antidumping investigation on hot-rolled stainless steel coils, and even for second grade products, businesses will become difficult.

The nickel price is fluctuating violently but seems unlikely to dip below $5.50 per pound. However, it is difficult to forecast for the price to exceed $7.00. It could be argued for the price range to be stable. A Japanese mill source alleges that nevertheless, the biggest factor of a fall in prices of stainless products comes from China's overproduction.

There is no information at all that Chinese stainless manufacturers have curtailed production. Against a backdrop, it is said that recently, trades of CR austenitic stainless sheets through the internet market are increasing. It is said that there is the general versatility for austenitic ones but the Japanese mills can only sigh for the net sale. In Japan as well, there was the similar attempt in the 1990s but such attempt died out soon under the Japanese habit that unless customers assured themselves of quality with taking products in their hand, they would not buy.

The Japanese mills are difficult to survive other than with high-nickel products among austenitic ones and are on track to find a way out with dual phase stainless sheets and ferritic ones.
last modified : Wed 01 Jul, 2015 [09:35]
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