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Japan to Aim for $2,000 CFR of CR austenitic Stainless Sheets for Asia
= For September shipment
The Japanese mills of austenitic stainless steel sheets are in a direction to offer markups by $150 or so from the current ones in negotiations on cold-rolled (CR) austenitic stainless steel sheets being soon commenced for Asia for September shipment. If such markups are accepted, their prices come close to $2,000 CFR.

The Japanese mills raised their prices by $100-150 for shipments of May and June, and their prices reached the level of more than $1,900 CFR. However, those prices dropped to $1,750-1,800 CFR for shipments of July and August. In addition to a sense of uncertainty like the UK's secession from the EU and so on, in tandem with a decrease in prices of ordinary steel products, they could not maintain their prices of CR stainless sheets.

However, from mid-June, the LME nickel price recovered the level of $4 per pound, and in July, it rose stably to $4.50. The mills are self-conscious that if they lose this opportunity, they will have a lot of trouble. They are in a stance to raise their prices by $200 or so to certain customers aiming for markups by more than previous level of prices. However, as the timing of offers and contracts varied, they are difficult to raise their prices across the board. For this reason, they intend to raise their prices continuously for September shipment onward and push up their prices to the level of $2,000 CFR as earliest possible.

In Korea, POSCO raised its domestic prices of austenitic stainless sheets by 100,000 won ($87) for July shipment. The company continuously raised its prices by 350,000 won ($304) in total from April till July. While, the Japanese mills raised their prices for shipments of May and June but as thereafter, their prices dropped, their markups are left only by $50-100. So, by offering markups by more than $150 or $200 depending on areas, they are to be able to realize similar prices to those of POSCO.

Chinese mills are likely to be aggressive for CR stainless sheets rather than hot-rolled (HR) stainless steel coils. Offers of HR coils are said not to be found. As Chinese mills canceled their contracts at cheap prices when prices rose and offered newly markups by $200, they earned frowns from rerollers. So, they may be facing an atmosphere to make offers of HR coils.

Against a backdrop of a rise in nickel price, the reason why the Japanese mills are going to proceed with negotiations at more increased prices than those of the previous time is because of the appreciated yen. If the exchange rate is assumed to be the level of 90 yen against the dollar, and if they cannot raise their prices even forcedly, they may face difficulties in management. If the yen appreciate more, an export offensive to Japan cannot be avoided. It is concerned to have an impact on the domestic market prices.
last modified : Tue 19 Jul, 2016 [09:47]
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