Although global nickel prices have fluctuated upward during the past week, this upward price movement has not triggered activity in the stainless steel market. Meanwhile, as of July 5, nickel prices at the London Metal Exchange (LME) closed the day at $16,915/mt for cash settlement.
On the other hand, some major Far Eastern stainless steel mills, such as YUSCO and Tang Eng from Taiwan and Baosteel and LISCO from China, have revised their quotations downward for July production. Taiwanese steel mill Tang Eng has announced its decision to operate at only half its capacity. Last month, the producer had used only 60 percent of its capacity, while this month the mill has decided to decrease its capacity utilization to 50 percent. The reasons of Tang Eng's output cut are low demand in the domestic market, the decrease in the volume of orders and low-priced import offers for the country, especially from China.
Meanwhile, import stainless steel offers to Turkey and the prices of imported stainless steel materials already in the Turkish domestic market are trending sideways. Turkish stainless steel buyers still prefer to import excess production and second grade products from Europe, while Turkish traders state that selling activity in the local market has remained slack, though they still try to fill their stocks to certain levels with materials at affordable prices and wait for a recovery in stainless steel demand.
Offers for prime quality 304 2B stainless steel cold rolled coil (CRC) of 2 mm thickness to Turkey are still standing at $2,700-2,800/mt CFR, while sales prices for similar materials in the Turkish domestic market are standing at the price range of $3,100-3,200/mt ex-warehouse. Market players believe that slackness in demand will be observed during the summer period in the Turkish domestic market.