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Plunging Price And Slow Output Recovery, How Will The Market Be?

Market|| Price of 304 Adjusted Twice, Dually Decreasing by 7 USD per day! 

The weak market of last week prolongs to the beginning of this week. All the main products have varying degrees of decrease in price. Early in the morning, an inquiry of 304 was 7 USD lower in price compared to Friday. Not long after, still in forenoon working time, there was a second price adjustment which was another drop in the market.

Dual decrease of 7 USD, 304 was sluggish!

On the morning of November 11th, the base price of private owned mills about 304 cold rolled mill edge coils in the Wuxi market was 2,020-2,030 USD/ton; most of the price of the state-owned mills about 4 feet slit edge mainly was about 2,120 USD. In the forenoon, there was a second adjustment, some cold-rolled stainless steel again decreased by 7 USD and some quotations of private owned amounted to 2,015 USD (base price).

However, attention was needed here. Although the base price of private owned mill edge coil was 2,015-2,020 USD/ton, since the market supply mainly was thin material, while there was less possible for thick material to be sold at a low price, traders were still unwilling to sell at a lower price.  

Stepping into November, the sluggish state of 304 has not been relieved and its price tends to drop recently. When will the opportunity occur to change the situation?


Decreased by 7-14 USD on 316L, there was a panic attack!

With the 304 decreasing in price, 316L also followed the suit. Viewing from today’s data, the main cold-rolled products inquiry had a drop of 14-19 USD/ton, and the cold-rolled of ZPSS reached 3,080 USD/ton of base price. It was similar to the hot-rolled quotation. The base price of mill edge coil was 2,860 USD/ton, 7 USD lower than the quotation in last Friday morning.  

The market tendency is simple in November. With mid-November approaching, the market is eager to have transactions, so there is nothing we can do but to adapt to the market for the moment.


After Reducing Production, the Output in November did not Increase Significantly!

Reported on November 11th, because of the maintenance and technical development of mills in October, the volume of production declined again after September. As predicted, the volume of the two months reduced by 9.8% which is 248,000 tons.

Recently, the price of stainless steel keeps in a weak situation and is closed the cost price, resulting in the weak producing motivation of mills. In November, some mills recovered production, but the volume will not increase significantly but will recover to the production level of September as predicted.

In October, the volume of stainless flat crude was around 2,281,000 tons which was 85,000 tons lower than last month and the decreasing percentage was 3.6%; it increased 81,000 tons year on year and the rising percentage was 3.7%.

The production of crude steel from 15 stainless steel wide plate coil manufacturers was about 1,916,000 tons, which was 25,000 tons less than last month and the decreasing percentage was 1.3%; the year-on-year increase was 184,000 tons and the rising percentage was 10.6%.

The production of crude steel from 17 strip manufacturers was approximately 364,000 tons, reducing by 61,000 tons compared to last month and the reducing percentage was 14.2%; with a year-on-year decrease of 103,000 tons, the reducing percentage was 22%.


The Output of Stainless Flat Crude Steel(unit: ten thousand tons)


In November, the production volume of stainless steel increased by 71,000 tons to 2,352,000 tons, the rising percentage was around 3.1%; the year-on-year increase was 235,000 tons and the rising percentage was 11.1%.

The Supply of Series 300 Increased Again!

Lately, some mills reduced the production of series 200 and promoted the production of series 300, which caused the higher output of series 300. In October, the volume of series 300 flat crude steel was about 1,041,000 tons, which was 14,000 tons more than last month and the rising percentage was 1.4%; it increased 20,000 tons year on year and the rising percentage was 1.9%.

The Output of Series 300 Stainless Steel Flat Crude Steel (unit: ten thousand tons)

After the maintenance of some mills, it is estimated that in November, series 300 will increase by 15,000 tons to 1,056,000 tons and the rising percentage will be 1.4%; the increase will be 54,000 tons year on year and the increasing percentage will be 5.4%.

For the last three months, series 200 has reduced!Because Huale Alloy was in maintenance and some other mills were in devices improvement, series 200 reduced in production and series 300 increased in some mills. In October, the production volume of series 200 dropped largely, which was 84,000 tons less than last month, decreasing to 836,000 tons, the reducing percentage was 9.1%; but it increased by 89,600 tons whose rising percentage was 12% year on year. Until now, the output of series 200 has reduced for three consecutive months, reducing 208,000 tons in total.


The Output of Series 200 Stainless Steel Flat Crude Steel (unit: ten thousand tons)


In November, Huale Alloy and other mills recovered their production, so the production volume of series 200 also recovered and increased, but failed to reach the former peaked level. It is estimated that in November, the production volume of series 200 will be around 876,000 tons, increasing by 40,000 tons compared to last month and the rising percentage will be 4.7%; and it will increase by 152,000 tons year on year and the rising percentage will be 21.1%  

----------------------------------------------------------------------Plunging Price And Slow Output Recovery. How Will The Market Be?------------------------------------------------------

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