Turkish
stainless steel has started to lose its calmness in August. In the market, which indicated signs of slight activity,
stainless steel producers started to announce price hikes. Producers such as Acerinox, Arcelor and ThyssenKrupp adjusted their
stainless steel prices.
Stainless steel prices are following an upward trend worldwide due to nickel prices, which have increased to $33,600/ton for cash payments and to $28,545/ton for 3 months buyer. Accordingly, producers announced price hikes ranging from 5 to 10 percent just in one week. In
Turkey, Arcelor
production stock
stainless steel sheets are sold at €3.350-3.400/ton, while Acerinox
production stock
stainless steel sheets are sold at $3.700-3.800/ton and ThyssenKrupp
production stock
stainless steel sheets are sold at €3.200-3.250/ton.
Although sales in the local Turkish market were slightly calm during August, sellers with higher inventories have concluded profitable sales. General expectation and reports for
Turkey are in the direction that prices would increase further in September and then fixed at those levels till the end of the year. However, in the light of nickel prices and the trend in global economy, every development seems possible. Moreover, market experts claim that the additional price hikes may be delayed until next year. There is also calmness resulted from the higher prices of
stainless steel pipes and wires and the holiday period in
Europe. With the impact of this calmness, trade from
Far East to
Turkey has accelerated. Especially, there are new bookings heard to have concluded from
China to
Turkey.
In the
Far East, prices are following an upward trend in
China and
Taiwan as well. Especially local prices in these markets have increased since our last analysis. Price of 304/2B grade 2 mm
stainless steel sheets in Shanghai is at RMB 28,100-28,700/mt ($3,525-3,600/ton) for Baoxin
production material, in Wuxi at RMB 27,900-28,200/ton ($3,500-3,540/ton) for TISCO
production material, in Foshan at RMB 30,600-31,400/ton ($3,840-3,940/ton) for Zhangpu
production material (all including VAT). 304/No 1 grade 4-5 mm sheets in Shanghai is at RMB 26,800-27,800/ton ($3,360-3,488/ton) for
Baosteel production material, in Wuxi at RMB 26,800-27,600/ton ($3,360-3,460/ton), in Foshan at RMB 27,000-27.700/ton ($3,387-3,475/ton).
Chinese origin
stainless steel pipes can find buyers in the Turkish and the Middle Eastern markets. Early August, a Chinese trader booked 30×2 mm AISI 304 grade welded
stainless pipes to
Turkey at $3,55/kg for Istanbul delivery. Similarly, there is an upward trend observed in
Taiwan. Taiwanese origin 304 2B
stainless steel coils can find buyers in a price range of $3,800-3,870/ton in the local market.
Sharp increases are expected in the Russian market, as well. The prices of
stainless steel flat-rolled products are expected to increase by 40 percent in the local market. The price of AISI 304 2B, which was at Ruble 111,653/ton including VAT has increased by 10.17 percent since July. The price of AISI ferritic steel, which was at Ruble 65,424/ton including VAT, has increased by 1.6 percent. In
Russia, especially due to warm weather and the rebound in the
construction industry, the
production in
stainless steel industry and in the related industries has increased. The fact that the
construction industry is in need of raw material in huge amounts lowered the
stainless steel inventories in
Russia. Moreover, since the prices of other
stainless steel producers for Russian market are very high, prices continue rising. It seems inevitable that these price increases will continue till the end of the year.
On the other hand, market situation in
Europe is a bit complicated. Market is strong and purchases are high. Stock levels are historically at lowest levels and many European mills are even not on holiday in order to meet the demand. The market is so tight that a slight movement in nickel prices directly impacts prices. As reports from major European mills indicate, there is further price rise expectation for September. As an example for the tightness in the market, many companies, which have had sales to Turkish market for a long time, cannot compromise on the prices with the buyers since they offer higher prices due to increased costs and oversupply.
As a summary, there is an unavoidable increase in global
stainless steel market. Although these price levels cause discomfort for buyers and lead them to other alternative sources, prices are rising in parallel with the rising nickel prices since nickel
production and inventories are not in parallel with
stainless production and they are unable to meet demand. Prices are expected to continue rising till the end of year or even till the first quarter of next year. However, taking the fact that many nickel
investments will be completed during next year and certain economies will slow down into account, prices will most probably decrease. However, the important question is when this unavoidable increase will end.