It is reported that Japanese stainless steel manufacturers expect to get an early recovery to a price level of USD 2,000 per tonne FOB in their export deals of nickel based CR sheets if LME nickel prices continue to trend upward from this week onward.
In the first week of April, LME nickel prices advanced by USD 0.50 per pound. Taiwan's and South Korea's stainless steel producers reacted with a price increase of USD 50 to USD 100 per tonne in their exports of nickel based CR sheets. On their part, Japan's stainless steel manufacturers have stopped their offers of export sales until now to watch how things go.
In the final week of March, the LME nickel market stood at USD 4.30 per pound. It went up by USD 0.50 to USD 4.80 per pound late last week. Taiwan's Yieh United Steel Corporation reacted with a price increase of USD 100 per tonne in its exports of nickel based CR sheets to correct the price reduction of USD 50 to USD 60 per tonne made at the end of March. Also, POSCO is said to have begun offering its exports of nickel based stainless CR sheets with a price increase of USD 50 per tonne.
In China, stainless steel manufacturer Taiyuan Iron & Steel Group Co increased its domestic sales price of nickel based CR sheets by CNY 400 per tonne to CNY 15,820 per tonne after tax in the second week of April. The company has given notice on its weekly price renewal since March. The Wuxi stainless steel market, too, advanced by CNY 600 per tonne in reaction to TISCO's price increase.
Prices of nickel based stainless CR sheets in Asia have already come under the gamut of bad factors, while stainless utensil manufacturers and stainless steel re rollers there have few stocks of materials on the whole. Therefore, the prices are sensitive to fluctuations in the LME nickel market. With an increase in the LME nickel market last week, various users of stainless steel in Asia, have reacted with active inquiries for imports of nickel based CR sheets from Japan and elsewhere.
Until recently, Japan's stainless steel producers conducted their export deals of nickel based CR sheets at a price level of USD 1,900 per tonne FOB. At present, though, most of them are putting their offers on hold to watch how things go because they see a possibility that they will struggle for a price recovery to a level of USD 2,000 per tonne FOB or beyond in what they negotiate, depending on how LME nickel prices fluctuate.
