Slowdown in the stainless steel market

The cold rolled stainless steel market is showing a slow response despite the rise in nickel prices. Negotiations for a June shipment are sluggish as nickel has surpassed $ 1,800.00 on the London Metal Exchange (LME) and Japanese refineries assume speculative demand. Customers are still showing a wait and see attitude.

The rise in nickel prices on the LME was caused by Indonesia's ban on the export of nickel ore, the instability of the political situation in relations between Russia and Ukraine, and so on. Meanwhile, the supply price of stainless steel is rising in the market. In Hong Kong, the offer price is $ 2,800 CFR. It increased by $ 150-200 in March.

China's Taiyuan Iron & Steel has increased its offer prices for Korea by $ 200 to approach $ 2,800 CFR for June shipping. Since domestic demand for CR austenitic stainless steel sheets is strong, Japanese factories will not be forced to participate in the export market. Thus, they have passed the $ 2,800 CFR level and are offering their prices at the $ 2,900 CFR level.

The Chinese austenitic stainless steel sheet market has not been able to take a step to raise prices despite rising nickel prices. Meanwhile, he said that the inventory of the embankment for nickel ore in the country is getting smaller. Since no Indonesian ore is being supplied, prices for nickel ore from the Philippines are starting to rise as reserves decline.

This situation suggests that the price of the LME will grow even more. This is believed to have an impact on nickel pig iron prices in China at some point. Therefore, China's prices for CR austenitic stainless steel sheets will be increased in the future.