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|Japanese Mills to Raise Prices of HR Ferritic Stainless Sheets by $70-80|
The Japanese mills of ferritic stainless steel sheets are in a stance to raise their prices by $70-80 from current prices in negotiations on hot-rolled (HR) ferritic stainless steel coils for Asia for September shipment, which will be commenced soon. It is because the high-carbon ferro-chromium being material for the period of July-September is raised by approximately 18% (16 cents per pound) and they are forced to pass such price hike on to their products.|
The current Asian market prices of HR ferritic stainless coils as rolled have recovered to the level of $800 CFR, and those of HR ferritic stainless coils pickled have done to the level of $900 CFR. As at the end of last year, they dropped to the level of $700 and $800 respectively, they improved by around $100.
Under the situation, as the price of material chromium has risen, the mills are to grapple with passing such price hike on to their ferritic products. It is because the price rise of 16 cents is equivalent to an increase in cost of HR coils by $70-80.
The Japanese mills are likely first to offer markups by $70-80 for Taiwan. Korea's POSCO is said to have already raised its offer prices for export. The company set out an increase in domestic prices of ferritic ones by 70,000 won (equivalent to $60) for July shipment. Seen from it, the company is seen to be offering the similar level of markups for export to that of the Japanese mills.
The balance of supply and demand of ferritic HR coils is tightening. It is largely affected by the fact that China's Baosteel Stainless Steel of a subsidiary of Baosteel Group stopped operations of a blast furnace to produce ferritic stainless iron at the end of June. Accordingly, China's customers of ferritic stainless sheets are sending inquiries to Japan.
A source is observing that markups of this time will penetrate into the market. It is because as prices of ordinary steel products have already risen, it becomes an environment for buyers to be easy to accept an increase in prices of HR ferritic stainless coils.
The balance of supply and demand of austenitic products is likely also to be tightening. In China, Qingshan Iron & Steel has entered its periodic maintenance of facilities, and Sichuan Southwest Stainless Steel has still suspended its operations possibly due to having a lasting effect of the probelm of unpaid electricity power charges. Further, it is reported that Dongbei Special Steel Group also suspended operations.
|last modified : Fri 15 Jul, 2016 [09:31]|