In response to nickel price recovery of LME to the USD 12 range per pound, an offering price of USD 3,650 CNF of Ni series of cold rolled stainless sheets and coils by POSCO, Korea and YUSCO, Taiwan disappeared for the Asian market this week.
The mills seem to turn into a wait and see attitude, and it is focused whether they will offer at the USD 3,850 range when reopened. The Japanese mills keep watching the situation for one month not following the Korean mills' reduction in price but they are going to offer at the USD 3,950 range to China next week.
The Korean and Taiwanese mills were conducting negotiation of export at USD 3,950 CNF in the end of February. However, as the nickel price plunged to the USD 11 range per pound, the price of both countries was reduced by USD 200 to USD 3,750. As despite of price cut, the price level was not acceptable to a customer, they reduced once again by USD 100 to USD 3,650 in April.
Against the plunged nickel price, among the cold rolled stainless mills of each country, POSCO decreased the April domestic price by KRW 100,000, YUSCO by TWD 4,000, TISCO of China by CNY 2,200 respectively. In China, the domestic price of Ni series of cold rolled stainless rose to CNY 27,300, but it decreased to the level of CNY 24,800 due to plunged nickel price. And then, it recovered to inch up to CNY 25,200 last week.
Despite of the nickel price of the USD 12 range, bid price has not reached USD 3,800 CNF yet. Under the situation, the Japanese mills' price of USD 3,900 will remain stiff. Both Korean and Taiwanese mills seem to re offer.
In China, it is the season of demand for cold rolled stillness. Distributors' inventory in Wuxi, China decreased to 211,000 tonnes as at the end of March from 252,000 tonnes as at the end of February. Because of lower level of inventory, inquiries from China are expected to increase if the nickel price becomes stable. Usually, it is the season of production of wares, and also it is the season for the new budget to be allocated of which circumstances are expected to come in this year too.
(Sourced from TEX Report Limited)
