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|Prices of CR Austenitic Stainless Sheets in East Asia Stabilize at $1,850 CFR Level|
Prices of cold-rolled (CR) austenitic stainless steel sheets in the East Asian region being high at the level of $1,900 CFR were adjusted downward but have become stable at the level of $1,850 CFR. |
In the past 2 to 3 years, those prices had fallen from around February but they rose in reversal this year and have now stabilized at around $1,850 CFR to SUS304 grade although they slightly fell from May. There is a case that some Japanese mill concluded a contract at the level of $2,000 CFR including a size extra.
The reason why prices of austenitic stainless sheets are stabilized is because not only the nickel price has remained at the level of $4 per pound but also Korea's POSCO has not appeared in export much. As China's exports of stainless sheets for Korea are decreasing, POSCO is said to give priority to its domestic supply, and accordingly, its export are decreasing to that extent. Taiwan's leading mills are like to be also supplying mainly to the domestic market.
In China, the Government is likely to begin to provide subsidies for weeding out of the steel industry, and it is reported that shutdowns or withdrawals of small and medium-sized stainless steel mills begin to advance. As 2 mills launched this year production of stainless sheets with an annual production capacity of 1 million ton level each. Accordingly, even if small and medium mills are weeded out, it is uncertain how much quantity will be reduced in total. Meantime, in the Chinese market, such cases are said to be few that prices fall largely. Under such circumstances, prices of CR austenitic stainless sheets are comparatively stabilized.
The question is the strong yen. In the Japanese domestic market, as an increase in consumer taxes was shelved, a last-minute rise in demand did not arise, and the market of CR austenitic stainless sheets remains lackluster. Under the situation, competitiveness of import products may be strengthened due to the strong yen.
|last modified : Mon 27 Jun, 2016 [10:07]|