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|Stainless Steel Mills to Limit Export of Austenitic Stainless Sheets|
Demand for hot-rolled (HR) austenitic stainless steel coils is growing in the Asian region. Inquiries of HR coils are increasing, and the Japanese mills are in a state to be unable to cope sufficiently with those inquiries. Under the situation, the Japanese mills begin to limit quantity in a manner such that they conclude contracts with reduced quantity by 100 tons against required quantity of 1,000 tons for example.|
The reason why inquiries of HR austenitic stainless coils are increasing from overseas is because China's export quantity of HR coils are drastically decreasing. Against a backdrop, there seem to be the facts that Baosteel Stainless Steel suspended operations of blast and electric furnaces in the Shanghai area, Sichuan Southwest Stainless Steel's production is unstable, small and medium-sized mills are forced into shutdown caused by environmental restrictions, and so on. In China, 2 large-scale mills begin to operate but nevertheless, domestic supply of HR coils is likely to be tight.
On export of HR coils from China, there is only information that a steel mill in China of a subsidiary of Taiwan's Formosa Plastics Group is actively exporting HR coils to Taiwan. There is another information that China's Taiyuan Iron & Steel is supplying HR coils to Taiwan to consign rerolling of cold-rolled (CR) stainless steel sheets but such information is not clear.
Anyway, it is certain that China's supply of HR coils to Asia is decreasing. Korea's POSCO is likely to be all tied up with supply of HR coils to its overseas subsidiaries in Thailand and so on and unlikely to appear in the export spot market of HR coils.
Therefore, requirements of HR coils to the Japanese mills are increasing but they like to limit exports of HR coils as domestic demand for CR austenitic stainless sheets is increasing. For this reason, they are proceeding with negotiations for November shipment on condition that quantity is reduced.
Meantime, it is a difficulty that prices of HR coils for rerolling mills are cheap. It is said to be predicted that although prices of CR sheets have reached the level of $2,000 CFR, it will take time for them to rise further at present. If so, it is a headache problem that it is difficult to raise pries of HR coils for rerolling mills kept down by prices of CR sheets.
|last modified : Fri 16 Sep, 2016 [09:31]|