Low stainless prices cut imports in China

Low stainless prices cut imports in China

Nickel-based cold rolled stainless steel sheet price continues its free-fall in China. The latest level of the Chinese manufacturers' delivery for June price is RMB 26'100/ton ($3'153/ton) for 0.5 mm and RMB 23'500/ton ($2'839/ton) for 2 mm cold-rolled stainless steel sheet. The prices even reach $2'700/ton for 0.5 mm and $2'430/ton for 2 mm when VAT is excluded. The new level of the domestic price is the lowest in China and below the manufacturing cost in Europe. Therefore, Europe may suspend exporting nickel base stainless to China. Furthermore, POSCO already reduced its nickel based stainless steel exports to China excusing the overhaul in June. Last but not least, the Japanese steelmakers have also cut their stainless steel exports to China. It is said that, the recent request of a Chinese delegation visiting Japan to stop exporting 200 series stainless steel have also contributed to the decline in addition to the low prices.