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|China's AD Investigation on HR SST Affecting Taiwan and S. Korea|
It has been 10 days since Ministry of Commerce of the People's Republic of China began its anti-dumping (AD) investigation on hot-rolled (HR) stainless steel (SST) and semimanufactures from Indonesia, Japan, South Korea, and the EU. During this time, China's SST sheet market seems to have regained stability. However, the export of HR SST by PT Indonesia Tsingshan Stainless Steel (ITSS), at 0.14 mil tons intended originally to China, has increased in volume and is now also heading for Taiwan and South Korea, keeping both markets down. In Taiwan, in particular, the domestic price for August shipment had to be lowered.|
In China, major state-run SST producers including Taiyuan Kron and Steel agreed on conducting an AD investigation on HR SST and semimanufactures from ITSS.
Until the investigation began, China's SST sheet market remained low, due reportedly to excessively cheap slab and HR products from Indonesia. With these coming to a halt, the market is said to be on a rise. Insufficient supplies of nickel have also been reported, which may accelerate the recovery of the price.
The export price seems to remain at the same level, due partly to weaker CNY. On the other hand, some sources say that the export price of HR SST is at $2,100-2,150 CFR, which implies a possible markup of $50 having been made.
South Korean POSCO is expected to disclose its domestic price of SST sheet for August shipment soon. The company made a 100,000 KRW ($88) markup for July shipment. Still, the markup did not necessarily become widespread, due to the arrival of a few thousand tons of cheap HR SST from Indonesia. Inflows from Indonesia have not stopped completely, and there seems to be little hope for a markup and the price is likely to be kept unchanged this time.
In Taiwan, Yieh United Steel Corp (YUSCO) has lowered its domestic price for August shipment by 1,000 TWD ($32), due to continued flows of HR SST totaling 20,000 tons. This was meant to go to China, but may continue arriving, which makes any markup impossible for the time being.
Japanese mills are taking a wait-and-see stance about export at present, with China's AD investigation launched against Japanese products. Customers are also likely to buy only to fill immediate needs a while. All in all, negotiations will not be so active for some time to come.
|last modified : Thu 09 Aug, 2018 [10:22]|