SteelOrbis has been informed that as of August 4 ex-China stainless steel coil export prices are at $2,350-2,450/mt FOB, moving sideways on average compared to July 28.
The support came from rising futures prices and the expected improvement in the demand-supply balance in the near future. Stainless steel futures at the Shanghai Future Exchange closed at RMB 14,820/mt ($2,183/mt) on Tuesday, August 4, increasing by RMB 305/mt ($45/mt) or 2.1 percent compared to July 28, while rising by 1.68 percent compared to the previous trading day, August 3.
During the given week, LME nickel prices have edged down slightly, weakening the support for stainless steel prices to a certain degree. Some stainless steel producers implemented maintenance works, while capacity utilization rates were at relatively high levels in July, resulting in sufficient supply to the market and exerting a negative impact on prices. Inventories of stainless steel have indicated some rises, negatively affecting prices. Demand for stainless steel from downstream users has remained slack, weakening the support for prices. As a result, local stainless steel prices from Shanxi Province-based Chinese steelmaker Taigang Stainless Steel Co., Ltd have decreased by RMB 100/mt ($14.7/mt).
However, Typhoon Dolphin is likely to negatively affect the arrivals of stainless steel, which will bolster the prices. It is thought that stainless steel prices in the Chinese domestic market will fluctuate within a limited range in the coming week, while will likely rebound in mid to late August as some downstream users might build up stock ahead of the traditional peak season in September.
Indonesia-based Tsingshan's export quotation for 304 (2 mm) is standing at $2,230-2240/mt FOB, up $15/mt on average week on week.
$1 = RMB 6.7917
