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Export Negotiations on Ferritic Stainless Sheets Go into Full Swing
= For September shipment
Negotiations on ferritic stainless steel sheets for Asia by the Japanese mills have gone into full swing for September shipment. They are likely to be offering markups by $70-80 from current prices. It is reported that Korea's POSCO is also offering markups as with the Japanese mills.

Against a backdrop of markups by the Japanese mills, there is the fact that prices of ferro-chrome have largely been raised by 18% or 16 cents per pound from the previous quarter for the quarter of July-September. So, the Japanese mills are to pass a price hike of raw materials on to products.

However, successful cases of an increase in prices due to a price hike of ferro-chrome were rare, and prices have basically been settled depending on supply and demand. It is very subtle whether customers may understand markups in tandem with an increase in prices of raw materials of this time.

Meantime, prices of ferritic ones have risen by $60-70 till now from a bottom. Unlikely in the case of austenitic stainless steel sheets of which prices fluctuate in tandem with prices of material nickel, prices of ferritic ones have risen inch by inch even slightly.

As it will be difficult to realize markups this time in one shot, if they are able to maintain an upward trend in prices by keeping up markups by $10-20, they will realize finally markups by several tens of dollars.

Negotiations are likely to have started first for Taiwan. For Taiwan, China's Baosteel Stainless Steel had mainly supplied ferritic stainless sheets in the past. However, the company withdrew last year from the Taiwanese market. For this reason, a chance has come also to the Japanese mills. However, recently, China's Taiyuan Iron & Steel is appearing, so the Japanese mills are to be difficult to raise prices.

Such cases have been often that prices of ferritic ones have risen responding to a large increase in prices of austenitic ones. It is in a development for nickel price to look for a chance of $5.00 per pound from current $4.70-4.80. If so, prices of cold-rolled austenitic stainless sheets aim for more than $2,000 CFR. In tandem with it, prices of ferritic ones are seen also to rise, and an opportunity to expand the range of a price increase is to come.
last modified : Tue 26 Jul, 2016 [09:44]
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