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Market Summary 20th,Feb

201

       201 price rose on Monday, transaction was quite good. Coldrolled continued to increase on Tuesday, what’s more, steel mills all closedprice in the afternoon, and the market was stimulated intensively, even intermediatefrequency furnace increased price or closed price. It’s known that the orders ofstainless steel sheet were increased on Tuesday, even some manufacturers said theywould close price. On Wednesday morning, the rise range in the market waslarger, but transaction perform silently. In the afternoon, market began toboil and transaction turned good. HONGWANG resources price continue to rise, LISCO and some origins began to closeprice at 4:00 PM. At that moment, HONGWANG futuregoods has been clinched a deal with over FOB 1450 USD/MT. As the environmentalprotection supervision group will come to six provinces including Henanprovince on Feb.15th. The market stimulating factors still exist,combined with the cooperation of steel mills closing price. It’s expected thatrise in price would continue!


304

           In Foshan market, most origins of 304stainless steel had upward trend on Monday, the rise range was 30-45 USD/MT. Thelarge rise range more focused on the private resources which was quotedrelatively low at earlier stage, merchants deliveredgoods actively. On Tuesday afternoon, the transaction atmosphere wasgood, some regions prices raised 15 USD/MT. On Wednesday some increased priceand some kept stable for shipment. At present, merchants mainly sold thin thicknesscurrent goods, the shipment went smoothly. Recently affected by the bettertransaction, in Foshan market, rise in price,opening price and closing price were exhilarative. It is expected that the risetrend would continue in the near future.


430

           400 series market is mainly steady. It is learned that factoryworkers were basically back to work, last week supply and demand factors impacton the prices will begin to ease in this week. 400 series market transaction isless, it is hard to deliver goods. Traders backlog of goods before Chinese NewYear led to inventory pressures increase, so traders negotiate price dependingon quantity, and a few of traders sell goods at low prices. For now, 400 seriesoverall market trend weak, it is hard to increase price. But as the marketrecovery, the support of cost and the positive policy factors, it is expected that400 series still have the hope of turning the corner.


Inorder to stabilized the falling stainless steel market after Chinese New Year, peopletry to find the reasons of stabilizing price!

 

*  The advantage of policy

1, The country main tone of iron and steelindustry standards management don’t have changes. The listed companies may be rectifiedaccording to the instructions, involving the increase cost.

2, Foshan convened 2017 city'senvironmental protection work meeting, deploying the environmental renovationwork in 2017, and Five District government has made"environmental protection military order", which explained theenvironmental protection normal won't change!

*  "Supply and demand” is out-of-balance transitorily, due to demandhas not recovered yet.

1,  Thecurrent market is full of resources, some goods even are on the road.

2, Under the strategy of"environmental protection" and "close down backward productionfacilities", many steel mills have not resumed production, which willaffect the following supply.

3, The slitting factories workers were backto work nearly two days. Lost of surfaceprocessing of titanium, 8K factories have not formally started working yet.Buyers still wait and see the steel prices, till price falling again then theywould consider to buy.

*  The support of cost

The cost mentioned here refers to ordercost. Taking the current mainstream origin main circulation 304/2B in Foshanmarket for an example, as it almost unilateral fell nearly two months,merchant's basic order cost is concentrated in FOB 2220-2380 USD/MT, and the deliverysequence of high price order ahead of low price order, which would further makethe current market transaction price with the order cost form severe upsidedown.

*  Steel mills controls of market is enhancing

On the one hand, as the development of"steel mill deep alliance" direction, the hot rolled mill control formarket price has caused the linkage effects of cold rolled. On the other hand,cold rolled steel mill set foot in sheet, and strengthen the control of coilsprice, what’s more, the mill would also control the market responsibly.


        Inaddition, on February 10th evening, LME nickel was closed at 10630dollars, surging 345 dollars. This also encouragedthe stainless steel market.