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Market Summary  10th,May


201

The market price wasstable before the International Labour Day. The first day after holiday, therewas a little rise in the market around $15/ton. However, the transaction didnot perform good, comparing with the period before holiday. In the second daysof after holiday, electrolytic manganese raw material prices rose $15 / ton.And also because recent market resources are less, the agent started supportand raise the price. However, with the decline in nickel in the following days,the transaction was not smooth, which lead to the recent price also appears to godown gradually.


304

“Long fall will rise,long rise will fall” is the eternal law of the market . Along with the pricestop dropping and began to be stable in Foshan and Wixi, the market situation wereimproved and rebounded. After the holiday, Stainless steel market sentiment isreleased, the price or will enter a slight rebound stage. With the decline innickel, cold rolled material was quoted with discount again. Some trades werein good condition on the sales, but some were opposite condition. In addition, itcame out a good news that one of mills successfully produced four feet of hot rolledmaterial, the price of HR fell $15-25 / ton. Besides, there was a largerdecline (around $30 / ton) in the price of CR because of a downward nickel. Butthe overall market was stabilized.


430

On the first dayafter the holiday, enthusiasm has not been lit in the market, but it remainedstable. LME nickel price turned from strong to weak after Wednesday, businessessaid that turnover was not too many, but the hot rolling market price is at asensitive period, after all, cold rolled and hot rolled suffered from a veryslight upward trend, but that trend moved relatively slow. Cold rolled marketcontinued a state of weak stability.



Although nickel price has fallen a couple days, the range ofdecline was over 5.6%. The stainless steel market could withstand pressure. Theamount of decline was about $30-45, which was about 2%. This performance wasbetter than a public commodity, also significantly stronger than the nickelprice.

We are going to do a comparison between thisyear and last year when LME nickel price was at the level of 9000 (the indexwas based on Wuxi CR&HR price). Maybe it could figure out some problems.





You could find that therewas a period that LME nickel was also struggling in the 9000 level last yearalso. Under the same level of nickel prices, last year's price wassignificantly lower than the price of this year. So why is this happening? Inaddition to the growth of production costs, in fact, another kind of rawmaterial of stainless steel called Cr had a sharp increase. During one year,,we could clearly see that the high chromium has grow up to 57.5%.