Lower nickel prices may drag stainless steel prices down in Turkey

Nickel prices at the London Metal Exchange (LME), which had closed at $16,460/mt for cash settlement on July 6, have this week declined below the level of $16,000/mt for the first time this year, closing on July 12 at $15,840/mt for cash settlements.   
 
In the meantime, market players state that the decline in nickel prices will likely be reflected in stainless steel mills' prices. Therefore, import offers for austenitic products to Turkey may also soften slightly. For now, import offers for 304 2B stainless steel cold rolled coils (CRC) of 2 mm thickness to Turkey are trending sideways at $2,700-2,800/mt CFR. As SteelOrbis reported last week, Turkish stainless steel buyers still prefer to import excess supply and second grade products from Europe at low prices.
 
In the global stainless steel markets, demand has remained weak and still showing signs of contraction. Accordingly, Chinese steel producer Baosteel has announced a decrease of $120/mt in its 304 stainless steel hot rolled coil (HRC) prices for deliveries in September.