After rising in January and February, world nickel prices have been following a declining trend in March. Nickel prices on the London Metal Exchange closed yesterday, March 22, at $18,470/mt for cash payments, after hitting $21,830/mt in February.
Along with decreasing nickel prices, world stainless steel demand has weakened as compared to early this year. Stainless steel producers in the Far East have decreased their prices this week by a certain margin, with offers of 304/2B stainless steel cold rolled coil (CRC) of 2 mm thickness now standing at $2,800-2,950/mt FOB. Last week, Chinese stainless steel producer Taigang Stainless reduced its export offers for 304/2B stainless CRC of 2 mm thickness by $100/mt to $2,950/mt FOB, for May shipments. The lower price offers of Far Eastern stainless steel producers have been exerting pressure on European producers' stainless steel prices, while these producers have been seeking to maintain their prices at current levels.
Back in February, higher nickel prices and decent demand had caused stainless steel prices to surge. In early February, European producers' 2 mm 304/2B CRC offers to Turkey were standing at $3,400/mt CFR, while offers from the Far East for similar material were at $3,100/mt CFR. At present, Turkish stainless steel buyers are receiving offers for 304/2B CRC of 2 mm thickness from European and Far Eastern producers at the price range of $2,850-3,000/mt CFR. In the meantime, offers for 304/2B CRC of 2 mm thickness in the Turkish domestic market are standing at about $3,400/mt ex-warehouse, though some deals are also heard below this price level.
In 2011, world stainless crude steel output stood at 32.1 million mt, up 3.3 percent year on year, hitting a new record for a single year, according to the preliminary report released by the International Stainless Steel Forum (ISSF) on March 21.