Stainless steel prices lack support on demand side

Friday, 21 March 2014 15:51:38 (GMT+3)   |   Istanbul
       

 

Global stainless steel prices have been trending upward in line with the increases in nickel prices, which have moved up over the past month. Nickel prices, which were standing at $14,200/mt in late February, increased to the $16,200/mt mark this week. However, having softened in the last two days, the three-month offer prices for nickel at the London Metal Exchange (LME) are now hovering at $15,900/mt.

With the influence of increased nickel prices, stainless steel quotations in the local Turkish market have been rising over the past two weeks. Stainless steel offers on ex-works basis are now at $2,750/mt, while stainless steel offers on ex-warehouse basis are also on the rise. Chinese offers from stockists and traders to Turkey for prime quality ready stock 304/2B stainless steel cold rolled coil (CRC) of 2.0 mm thickness have increased by $50/mt since last week and are now at $2,400-2,500/mt CIF Istanbul.

China-based steelmakers TISCO and Baosteel announced increases in their stainless steel export offers early this week, increasing their prices by $50-70/mt to $2,500-2,550/mt FOB. Despite the increase in export prices, demand in China's domestic stainless steel market lacks strength and so local stainless steel spot prices have mostly been moving sideways. Although production costs have increased, lack of demand and the sideways trend of local prices have caused some mills like LISCO and Baosteel to reduce their production.

If the current downtrend of nickel prices continues in the coming period, price increases will likely be withdrawn given the low demand situation in the market.

Weekly price movements of different steel products in major markets can be viewed comparatively in the SteelOrbis Historical Steel Prices section. Market trends can thus be seen more clearly, while desired charts can be created and used in reports or presentations.


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