TEX reported that Japan's stainless steel manufacturers are expected to offer prices of USD 3,500 to USD 3,600 per tonne CNF when they start negotiations this week on their export deals of nickel based stainless CR sheets for March 2011 shipments to Asian destinations, mainly to China.
Chances are they will have a hard time settling their deals because local customers show no moves to expedite new purchases of Ni based stainless CR sheets from Japan.
The Japanese stainless steel manufacturers find it necessary to get prices of USD 3,500 per tonne CNF or more so that they can negotiate what they export on payable terms. What counts against them, though, is tough price competition from rival stainless steel producers in nations such as Taiwan. In this connection, benchmark Asian prices of Ni based stainless CR sheets still stand at a level of USD 3,200 to USD 3,300 per tonne CNF for delivery in China.
In South Korea, POSCO has raised its domestic sales prices of Ni based stainless steel products by KRW 200,000 per tonne for January 2011 shipments. POSCO's current export prices of Ni based stainless CR sheets are viewed as a level of USD 3,200 per tonne CNF for delivery in China.
In Taiwan, various stainless steel producers keep their domestic sales prices of unchanged of Ni based stainless CR sheets for January shipments, which is seen as moves to fight import inflows into the nation. As to export sales, they have increased what they charge by the equivalent of nearly USD 200 per tonne to meet an appreciation of the Taiwanese currency against the US dollar. In the case of Yieh United Steel Corporation, the company has opted to revise its price terms once a month, a break with the revision twice a month.
In China, Taiyuan Iron & Steel Group Co has changed the price renewal of its stainless steel products into a monthly one from the earlier weekly provision.
China's current Wuxi stainless steel market for Ni based CR sheets is assessed at CNY 25,000 per tonne after tax. By comparison, TISCO applies a flat asking price of CNY 25,600 per tonne after tax for January 2011 shipments. Distribution stocks of stainless steel products in the Wuxi area totaled 194,000 tonnes at the end of December 2010, total stocks of less than 200,000 tonnes since October 2010.
Meanwhile, stainless steel production by China's five major manufacturers totaled nearly 700,000 tonnes in September 2010. Since then, their combined production is said to have come down to a monthly level of 600,000 tonnes in the wake of production cutbacks at their works.
(Sourced from TEX Report Limited)
