The ongoing decline in nickel prices has continued to negatively impact global stainless steel prices. Even though nickel prices in the London Metal Exchange (LME) were not expected to drop under the level of $15,000/mt, they have moved down to $14,800/mt this week. Accordingly, a total decrease of $2,000/mt has now been witnessed in nickel prices since early April.
Meanwhile, both European and Asian stainless steel mills have had to reduce their prices amid sluggish demand and the decreases seen in nickel prices. Lately, Taiwan-based YUSCO announced a cut of $100/mt in its export prices for 300 series stainless steel.
Import stainless steel prices in Turkey have also been moving downward. Far Eastern origin offers to Turkey for 304/2B stainless steel cold rolled coil (CRC) of 2.0 mm thickness have declined to $2,500/mt, from $2,550-2,650/mt CFR last week. If nickel prices continue their downward trend, then stainless steel quotations will likely see their lowest levels of the past couple of years.
Turkey's stainless flat steel imports increased by 18.9 percent to 33,752 mt in March this year as compared to the previous month, while indicating a rise of 6.8 percent year-on-year basis. The increase observed in the import volume in March stemmed from import purchases concluded in the January-February period when the market was somewhat more dynamic.
The chart below shows Turkey's most important flat steel import sources in Q1 2013 and the monthly purchase volumes from the countries in question.
