SteelOrbis has been informed that as of July 7 ex-China stainless steel coil export prices are at $2,350-2,450/mt FOB, remaining unchanged on average compared to June 30.
During the given period, local stainless steel prices from Shanxi Province-based Chinese steelmaker Taigang Stainless Steel Co., Ltd have moved sideways.
During the given week, LME nickel prices have edged up slightly. Indonesia’s loosening of its quota policy on nickel ore has resulted in increasing ferronickel supply, which will contribute to declining production costs and exert a negative impact on stainless steel prices. Since inventories of stainless steel at two major distribution hubs in China - Foshan and Wuxi – have increased continuously, downstream users have mostly concluded purchases just in line with their needs. The new steel trade policy in the EU is being implemented as of July 1, with the out-of-quota tariff increasing from 25 percent to 50 percent, which has curbed China’s stainless steel exports. Meanwhile, the outlook for stainless steel exports in the second half of the current year remains pessimistic. It is thought 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.
Stainless steel futures at the Shanghai Future Exchange closed at RMB 14,775/mt ($2,170/mt) on Tuesday, July 7, increasing by RMB 35/mt ($5/mt) or 0.24 percent compared to June 23, while rising by 1.86 percent compared to the previous trading day, July 6.
$1 = RMB 6.8054
