TEX REPORT Wednesday, May 14, 2014
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China’s CR Stainless Sheet Market/Both Makers, Distributors Hesitant to Sell
According to information obtained by a source, in the Chinese market of cold-rolled (CR) stainless steel sheets,
both of manufacturers and distributors are continuing a stance being reluctant to sell, so attention is paid to when CR
stainless sheets are quoted.
In the Chinese market of CR stainless sheets, amid the situation that both of manufacturers and distributors have
carried inventory at cheaper prices, the LME nickel price shot up. It is reported that last week, the market prices of CR
austenitic stainless sheets rose by as much as 700 CNY ($113) but a price rise is in a state not to stop at such a level.
The market prices of CR austenitic stainless sheets in the world starting with Asia had been swayed for these
several years by China’s prices of nickel pig iron as a benchmark, and despite of prices increases of other steel products,
the rock-bottom pricing of them had continued. However, as the LME price is surging, prices of CR stainless sheets are
likely to rise largely in China as well reacting to it.
Responding to Indonesia’s export ban of nickel ore, China’s inventory of nickel ore has been decreasing. China is
said to have commenced to purchase Filipino ore but prices of ore are also soaring there. Under the circumstances, as it
is difficult to purchase material ore at cheap prices, prices of nickel pig iron have to be aware of the LME market price.
The Japanese CR stainless sheet mills have slightly lit up mentioning that prices of CR sheets had been rockbottom
for these several years as prices of low-nickel contained sheets had not risen caused by China’s nickel pig iron but
if the market returns to the one based on the world index (the LME nickel price), stainless sheets can get out of rockbottom
prices.
The source related to a Japanese mill is seeing that under the current index (the LME nickel price: $9.30 per
pound as of 12th), an envisaged price of CR sheets has to be the level exceeding $3,000 CFR, and is on track to fix its
offer prices for July shipment watching the settlement date of the LME on 20th.
Chinas’s Crude Steel Production in Apr. 68,840 t/t, Down 2% from Mar.
China’s production quantity of crude steel in April was 68,840 thousand tons (abbreviated as t/t), down 2.0% from
the previous month and up 2.1% from the same month last year. The National Bureau of Statistics of China revealed it.
Its production quantity per day was 2,295 t/t, up 29 t/t from 2,266 t/t in the previous month. That in April fell compared to
that in March due to the operation days being lessened by 1 day, and a production increase continued actually. Crude steel
production of more than 60 million tons a month had continued for 16 months in a row since January last year. Its
cumulative production quantity in January-April was 271,860 t/t, up 2.7% from the same period last year.
Its production quantity of steel products was 92,500 t/t, down 2.7% ditto and up 5.4% ditto. The production
quantity per day of steel products in April was 3,083 t/t, up 16 t/t from the previous month the same as crude steel
production. Its cumulative production quantity of steel products in January-April was 353,590 t/t, up 5.9% from the same
period last year. It reaches 1 billion tons at an annualized rate in the calendar year.
Its production quantity of pig iron was 60,180 t/t, down 2.2% ditto and up 0.2% ditto. Its production quantity per
day was 2,001 t/t, up 25 t/t from the previous month. Its cumulative production quantity in January-April was 239,440 t/t.
The Chinese steel industry had been observed to decrease its production caused by reinforcement of the environmental
regulations. However, as it turned out, its production was increased, and excess supply continued. China’s export
quantity is foreseen to increase further.