Latest Stainless Steel News 11/08/2010

Thu 12 Aug 2010

TISCO raises weekly domestic stainless price

China's largest stainless steel producer, Shanxi Taigang Stainless Steel (TISCO) announced to raise its domestic stainless steel price for this week by RMB300/ton (USD45/MT) for domestic market. Its new price for 304 2B coil is RMB22,920/ton VAT and its 304 NO.1 hot rolled price is RMB22,120/ton VAT.

However, TISCO is keeping its price unchanged on 430 stainless steel grade.

Meanwhile, stainless prices and trading volumes picked up in south Chinas Foshan spot market in the 9 August week as nickel prices continued to rise.

Trading is more active in the week as compared to the previous week, not only are stockists buying, users are buying too. Further users are not buying just for immediate use, they are buying to stock up too.

The rise in nickel prices over the past two weeks had boosted market confidence but most industry observers say it is still too early to predict if prices will continue their uptrend. Three-month nickel prices on the London Metal Exchange $22,000/5/t on 10 August.

Russia may soon impose duties on some stainless imports

The Russian government has approved the industry ministry's proposal to introduce antidumping duties on flat rolled austenitic stainless steels from China, Korea, Brazil and South Africa for three years.

Draft regulations have been prepared, and if signed by the prime minister could be implemented within one or two months. The range of duties proposed go from 4.8% for products from South Korea's Posco, to 21.1% for Brazilian stainless, 29.9% for Shanxi Taigang Stainless Steel in China, and 33.3% for sheet from South Africa.

The idea of imposing duties stemmed from an appeal submitted in 2009 by a group of national producers led by Russia's Mechel (which accounts for 70% of the stainless steel output in the country), and an investigation was initiated.

Spetsstal's executive manager Andrey Voronin considers the imminent duties unreasonable, as they overlook the fact that Russian mills cannot make the whole range of stainless flat products for which there is demand.

Besides, Russia may well be inundated by stainless imports from other countries with excessive capacities like the US, India and Japan, let alone the EU, which is likely to take advantage of the expiry of Russian duties on EU-made stainless steel imports in March.

According to Spetsstal, austenitic grades account for 90% of the Russian output of stainless flat products.

European stainless sheet market anticipates upswing after summer

Whilst most of Europe still enjoy summer holidays and business activity is quieter as a result. However, several sources say trading conditions are steady at slightly better than expected levels, and certainly up on summer 2009.

A combination of falling alloy surcharges over the last couple of months, along with a marginal softening of base prices, means transaction prices have been declining. This may have encouraged some buyers to draw down any stocks built up during the escalation of surcharges through H1.

Stainless mills are thought to be managing the market supply so as not to undermine already poor base prices. Maintenance work is often undertaken in summer months. Mill delivery times for mainstream grades are late September or into October. Supply chain stocks are being carefully managed and are seen as normal-to-low.

Nickel’s pronounced upward price movement over the last couple of weeks suggests higher alloy surcharges in September. This could prompt some unseasonal buying of austenitic grades.

That stainless demand is at a reasonable level for this time of year leads some to be cautiously optimistic going forward. The more bullish sources think sales volumes from September through to year end could mirror, though not exceed, those experienced earlier in the year, and certainly be better than H2 2009.

Mills are almost certain to press for base price increases if there is a firming of trading conditions from next month.

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