TEX reported that Japanese mills of cold rolled Ni series stainless steel sheets for Asia including China have started at USD 3,100 CNF with a markup of USD 200 per tons for March 2012 shipment. Other than the Japanese mills, Korea's POSCO and Taiwan's YUSCO seem to have proceeded with negotiations at USD 2,900 CNF keeping their increase by USD 100.
Corresponding to the nickel price rise to the current high USD 8.00's from USD 7.60 per pound in late November 2011, the Japanese mills have offered a markup of USD 200 aiming at the level of USD 3,000 CNF. As a distributor and so on are lighting up with increased valuation of own inventories, their reluctance to sell will be foreseen if the situation becomes further increase in its price.
Each customer like a manufacturer of kitchen wares has not enough inventories. With this, as the environment is that when such customer receives a new order, it has to buy newly stainless cold sheets, it is sending inquiries of a large unit of quantity like quantity in December 2011 plus more than 1,000 tonnes against the Japanese mills. However, as Japan's prices are higher than those of Korea and so on, contracts have not been concluded yet.
Korea's POSCO left its domestic prices for January 2012 shipment unchanged. However, it seems to have put a squeeze on the discount range of Ni series by KRW 100,000 from KRW 500,000 to KRW 400,000 from the list price of 3,800 thousand won. The actual market price is about KRW 3,700,000. It is uncertain whether it revises the list prices in February 2012 shipment or cuts down its discount range but it looks set to increase prices virtually.
Taiyuan Iron and Steel (TISCO) of China increased its domestic price for February 2012 shipment by CNY 500 to CNY 21,700 from decrease of its price for January 2012 shipment by CNY 900 and this was its first markup in a long while. Its increase is corresponding to price rise in the Wuxi market from CNY 19,700 in November 2011 to current CNY 21,000 by CNY 1,300.
In the backdrop of price rise in that market, there seems for total inventory quantity of Ni series cold and hot stainless sheets to be 177,000 tonnes dipping below the level of 180,000 tonnes in the end of December 2011 for the first time in 2 years. In China, as it is the demand season of cold stainless sheets from now till May 2012, increase in quantity and price will be expected unless the nickel price is collapsed. Meantime, TISCO increased its Cr series cold stainless sheets for February 2012 shipment for the first time in a long time by CNY 150 to CNY 11,750.
In the European market, ThyssenKrupp decreased its price in January 2012 shipment by EUR 3 from the previous month to EUR 1,343. In the US market as well, its price dropped by just a little under USD 60 in January 2012 shipment. Both came from a slight decrease of the nickel price. However, at present, such nickel price is recovering. With this, in the USA and Europe, their prices are foreseen to be raised by USD 100 to USD 200 for February 2012 shipment following price rise of nickel.
As the Chinese New Year is coming soon, business negotiations also are getting a holiday. However, after the Chinese New Year, mills of each country seem to offer price increase consistently, the situation will become for prices of cold stainless sheets to increase surely. The problem is whether the European economic trend and nickel price are stabilized hereafter as well.
(Sourced from TEX Report Limited)
