TEX reported that such movement is found that even not many but some customers of cold rolled austenitic stainless steel sheets increase purchase quantity from usual 100 tonnes a month to 200 to 300 tonnes in August 2012 shipment. As the Asian major mills decreased their prices of cold austenitic stainless sheets for July 2012 shipment, each customer realizes bottoming out, and is thought to show an attitude to buy at a rock bottom price.

The LME nickel price became again below USD 7.50 per pound and if it continues to be close to USD 8.00, there is a possibility that each customer replenishes its inventory anticipating demand after the summer vacation.

In July 2012 shipment, Taiyuan Iron & Steel of China decreased its prices of cold austenitic stainless sheets by CNY 800 and cold ferritic stainless sheets by CNY 450 and Baoshan Iron & Steel also decreased prices of austenitic ones by CNY 700 and ferritic ones by CNY 100. Prices of austenitic ones had been left unchanged for about one year but recently, those decreased continuously.

The Taiwanese mills also decreased their domestic prices for July shipment of austenitic ones by TWD 3,000 and ferritic ones by TWD 1,500. POSCO of Korea left its prices unchanged with some discount rates.

By such leveling off or price discount of the Korean mill, both a mill side and a customer side are said to see that the Asian prices of cold stainless sheets almost hit bottom.

Accordingly, if such move is made that the nickel price rises up to about USD 8.00 per pound and stabilizes, there is a sign that each customer breaks its wait and see stance and moves toward replenishment of inventory.

Most prices of cold austenitic stainless sheets are USD 2,700 CFR in the Asian area. Even if a customer moves to replenishment of inventory at the current price level, the situation is for the Japanese mills to be unable to embark on negotiations. It is because in case of the Japanese mills, USD 2,900 is necessary at least, and under the circumstances of the price difference of USD 200, they will not be able to start out in negotiations.

The Japanese mills are making negotiations on SUS 304 stainless sheets by selecting very important customers and are supplying them. Rather, they have proceeded with export negotiations on their distinct grades and therefore, their export of SUS304 for general use seems to become a little.

Source - TEX Report Limited

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