SteelOrbis has been informed that as of April 21 ex-China stainless steel coil export prices are at $2,350-2,450/mt FOB, increasing by $50/mt on average compared to April 14.
During the given period, local stainless steel prices from Shanxi Province-based Chinese steelmaker Taigang Stainless Steel Co., Ltd have risen by RMB 250/mt ($36/mt).
During the given week, LME nickel prices have moved up, bolstering stainless steel prices to a certain degree. Nickel futures exceeded the $18,000/mt mark, reaching their highest level in three months, mainly due to cost pressures and the tightening of supply.
The European Parliament has reached a provisional agreement on steel safeguard measures this week, announcing a 47 percent reduction in import quotas effective as of July, with out-of-quota tariffs doubled to 50 percent. This also bolsters prices in the European market, and makes the prospects for future import sales cloudier. Meanwhile, the easing of the situation in the Middle East and the partial restoration of navigation through the Strait of Hormuz have exerted a positive impact towards helping to stabilize global trade expectations.
In addition, the Ministry of Energy and Mineral Resources of Indonesia has officially implemented adjustments to the HPM (Harga Patokan Mineral/Mineral Benchmark Price) formula, resulting in a surge of up to 135 percent in the base price of low-grade nickel ore, which has directly driven up nickel ore procurement costs. At the same time, stainless steel futures prices have moved up, positively affecting prices in the spot market. Moreover, since the Labor Day holiday (May 1-5) is approaching, downstream users may build up inventories, which will provide support for stainless steel prices. It is expected that stainless steel prices in the Chinese domestic market will edge up further in the coming week.
Indonesia-based Tsingshan’s export quotation for 304 (2 mm) has risen by $50/mt to $2,140/mt FOB.
Stainless steel futures at the Shanghai Future Exchange closed at RMB 14,805/mt ($2,158/mt) on Tuesday, April 21, moving up by RMB 145/mt ($21/mt) compared to April 14, while decreasing by 1.0 percent compared to the previous trading day, April 20.
$1 = RMB 6.8594
