SteelOrbis has been informed that as of June 9 ex-China stainless steel coil export prices are at $2,350-2,450/mt FOB, down $50/mt on average compared to June 2.
This decline has been largely awaited by market sources, seeing a slowdown locally. During the given period, local stainless steel prices from Shanxi Province-based Chinese steelmaker Taigang Stainless Steel Co., Ltd have decreased by RMB 200/mt ($29.3/mt).
During the given week, LME nickel prices have indicated declines amid the strength of the dollar and the geopolitical crisis in the Middle East. The Indonesian Ministry of Energy and Mineral Resources (ESDM) has temporarily suspended 34 nickel mining projects that failed to meet their RKAB (Work Plan and Budget) targets. The Indonesian government's policy to centralize natural resource exports has entered a transitional phase. The anticipated reduction in Indonesian nickel pig iron (NPI) production, combined with the destocking of domestic port inventories in China, has provided support for nickel prices, which in turn has prevented stainless steel prices from recording a steeper decline. But stainless steel futures prices have moved down, negatively affecting market sentiments. At the same time, demand for stainless steel has been slack in the traditional off-season in June, weakening market sentiments. It is expected that stainless steel prices in the Chinese domestic market will soften in the coming week.
Indonesia-based Tsingshan’s export quotation for 304 (2 mm) has remained stable, still standing at $2,220/mt FOB, after a softening of $40/mt seen in the previous week.
Stainless steel futures at the Shanghai Future Exchange closed at RMB 14,505/mt ($2,128.5/mt) on Tuesday, June 9, decreasing by RMB 560/mt ($82/mt) or 3.7 percent compared to June 2, while declining by 1.09 percent compared to the previous trading day, June 8.
$1 = RMB 6.8147
