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Weekly Average Price|| 300 Series Prices Keep Rising and 316L Became “Dark Horse”. -- Stainless steel Market Summary in China(24th, Aug – 28th, Aug)


304/2B: The average price of 2.0*1219*C (slit edge) of ZPSS in the Wuxi market is US$2,140/MT(plus taxes) which is US$43/MT higher than last week and the rising percentage is 1.92%. Besides, the average price of 2.0*1219*C(slit edge) in the Foshan market is US$2,180/MT(plus taxes) which is also US$43/MT higher than last week and the increasing percentage is 1.89%.

304/2B: The average price of 2.0*1240*C (mill edge) of Hongwang in the Wuxi market is US$2,085/MT(plus taxes) which is US$27/MT higher than last week and the rising percentage is 1.22%. Besides, the average price of 2.0*1240*C (mill edge) of Hongwang in the Foshan market is US$2,065/MT(plus taxes) which increases by US$35/MT compared with last week and the increasing percentage is 1.58%.

304/No.1: The average price of 4.0*1520*C (mill edge) of ESS in the Wuxi market is US$2,015/MT(plus taxes) which increased by US$50/MT compared with last week and the rising percentage is 2.41%. Furthermore, the average price of 4.0*1520*C(mill edge) in the Foshan market is US$2,025/MT(plus taxes) which is US$57/MT higher than last week and the increasing percentage is 2.77%.

316L/2B: This week, the average price of 2.0*1219*C of TISCO in the Wuxi market is US$2,885/MT(plus taxes) which is US$77/MT higher than last week and the increasing percentage is 2.54%. Moreover, the average price of 316L/2B 2.0*1219*C(slit edge) of TISCO in the Foshan market is US$2,895/MT(plus taxes) which increases by US$53/MT and the rising percentage is 1.74%.

316L/No.1: This week, the average price of 4.0*1500*C(mill edge) of ESS in the Wuxi market is US$2,725/MT(plus taxes) which is US$93/MT more than last week and the increasing percentage is 3.28%. What's more, the average price of 4.0*1500*C(mill edge) in the Foshan market is US$2,745/MT(plus taxes) which is US$71/MT higher than last week and the increasing percentage is 2.47%.

201/2B: This week, the average price of 1.0*1219*C(mill edge) of Hongwang in the Wuxi market is US$1,085/MT(plus taxes) which is US$1/MT higher than last week and the rising percentage is 0.14%. Besides, the tax-inclusive average price of the Foshan market is US$1,080/MT(mill edge) which decreases by US$3/MT compared to last week and the decreasing percentage is 0.27%.

J2, J5/2B: The average price of 1.0*1219*C(mill edge) of the Wuxi market is US$1,040/MT(plus taxes) which is US$6/MT more than last week and the increasing percentage is 0.57%. Besides, the tax-inclusive average price of the Foshan market is US$1,035/MT(mill edge) which decreases by US$3/MT compared with last week and the declining percentage is 0.28%.

430/2B: The average price of 2.0*1219*C(slit edge) of TISCO in the Wuxi market is US$1,120/MT(plus tax), which is US$9/MT higher than last week and the rising percentage is 0.79%. The average price of 2.0*1219*C(slit edge) in the Foshan market is US$1,115/MT(plus taxes) which increased by US$6/MT and the rising percentage is 0.53%.


Futures|| Investment Poured in, LME Nickel Increased by US$300/MT which Hits the New Record during the Year.

On Monday(August, 31st), because the LME was close for the banks' summer holiday, and trading resumed on Tuesday(September, 1st ). After the market opened, the LME Nickel price kept rising, which once increased to US$15,640/MT and hit the new record in the year. Shanghai Futures Exchange Nickel price also increased along with the LME trend. Until the close at noon, the main contract 2011 increased by US$243/MT and reached US$18,043/MT which is the new highest during the round.



Influenced by the increasing nickel price, the price of the stainless steel futures continues to boosting after the stock opened(on September 1st). Until noon, the price of the contrast 2011 rose to US$2,125/MT,  which is US$22/MT higher, compared with the price of US$2,105/MT of the night stock. During the daytime of September 1st, the decrease of August 31st recovered. Then why did the price fluctuate so much?        



Investment poured in, boosting the stock price.

Stimulated by the substantial growth of LME Nickel price, on September 1st, the increase of Shanghai Futures Exchange nickel price tended to be stronger. With the break of US$17,673/MT of NIM(Shanghai Futures Exchange, Nickel), the investment started to pour in the market. The added positions of NIM increased over 17,000 MT until the close at noon.

The stainless steel futures market also presented an increasing trend. After the open on September 1st, the market price kept rising and so did the add positions. The stainless steel futures index increased by 64,163 MT of added positions until the close at noon. Compared with the night stock of August 31st, it was 1,092 MT higher.



Except for the promotion by the investment, another reason for the increasing stainless steel price is the ferronickel price. Rumor has it that a mill in East China purchased high ferronickel at US$177/nickel (price to the factory, tax inclusive). The price was US$3/nickel higher than that of last week which was US$174/nickel (price to the factory, tax inclusive).   

From a broad perspective, with the coming positive factors, the price of nickel and stainless steel futures will stay in an increasing mode. The investment will keep throwing in with the positive emotion spreads in the market, so it is predicted that the price will increase at a later time.



Close the market soon after opening. 304 orders were hot still.



In the 304 market of September 1st, Tsingshan started quoting with a rise of US$44/MT-US$59/MT, breaking the stillness in the market. The beginning price was close to the 304 stock price on September 1st, which surprised many people. Hot-rolled 304 strip stopped quoting. 304 series of Tsingshan stopped quoting both in the cold-rolled and hot-rolled stainless steel market. Agents are mostly reserved in selling.    


Mills are positive in boosting prices.
 
In the Wuxi market of September 1st, the cold-rolled 304 began at US$2,065/MT. Only Delong remained the same price as of August 31st, but other mills increased in price. Compared with the cold-rolled stainless steel, the hot-rolled stainless steel price has been in the rising trend. The price of 304 hot-rolled sheet of Tsingshan began at US$2,035/MT which was close to the price of the stock market, so for now, there is little meaning to lift the stock price up. Also, the turnover of hot-rolled 304 stainless steel is small in the Wuxi market for now.

On September 1st, ESS began quoting hot-rolled 304 with the growth of US$15/MT, the base price of the sheet between 4.0 and 8.0mm was US$2,055/MT; the price of hot-rolled 316L was US$2,825/MT which increased by US$22/MT. On the basis of Tsingshan and ESS's guiding price, the willingness to adjust prices was not proactively as expected. The base price of the Tsingshan sheet product was around US$2,045/MT and ESS quoted the same price in the normal products while some price was US$2,050/MT. Although there was an adjustment in price for the second time, the change focused on the low-price and active products, which was only an increase of US$7/MT.      

Lately, the resources from Chengde reduces and Delong supplies more cold-rolled resources, which leads to a low supply volume of hot-rolled stainless steel. Many traders said that the industrial orders increased recently and the downstream buyers also enter the market actively. Both these reasons support the rising price trend of hot-rolled 304. 



Cold-rolled 304 was adjusted price for three times in the daytime.

In cold-rolled 304 of the Wuxi market, because the steel mill's opening price was lower than expected, many traders run order with a stable price. But with the LME Nickel price increased at noon, and the better trade volume, traders raised the quotation which increased by US$7-15/MT. As for the cold-rolled stainless steel market, the price of 4-feet mill-edge of Delong and Chengde has increased to US$2,065/MT(which is US$2,105/MT in 2.0 slit edge); as to that of Yongjin, the price was adjusted to US$2,085/MT(which is US$2,150/MT in 2.0 slit edge).

In the Foshan market, the price change is quite interesting. The price was set to increase at first, but after the mills opened the guiding price to the market, the prices failed to support and soon it reduced the quotation. Accidentally, because the trade volume increased, the stainless steel price was again increased by US$15/MT. Although there were so many operations in price, at last, the price remained the same as that on August 31st. The cold-rolled base price of the 4-feet and mill-edge of Delong, Chengde, and Hongwang was US$2,050/MT(which is US$2,115/MT in 2.0 slit edge). As for Yongjin, the base price of the 4-feet stock was quoted at US$2,090/MT by the traders(which is US$2,155/MT in 2.0 slit edge).

According to the agent, after Tsingshan began trading on September 1st, the overall order volume is substantial. In the Foshan market, cold-rolled 304 of Delong accepted futures orders to October, and the feedback is great. 



316L got stuck in a price dilemma 
 
On September 1st, Tsingshan quoted hot-rolled 316L at US$2,750/MT which was surpassed by the private-owned mills’ stock price in the Wuxi market last week. The base price of the sheet was US$2,775/MT, but ESS increased it by US$22/MT and reached US$2,825/MT. The price difference between the two major mills was over US$74/MT which brings the stock quotation into a dilemma of
increasing price or not.

Stepping into September, the increasing trend remains. People are chasing for the higher price and the recent order volume is not bad.

In particular, the current inventory is at a low level, the supply gap has caused the market to be reluctant to sell, and the steel mills are also actively pulling up the price, so the upward trend is unstoppable!
 


Summary:

The shortage of raw material supply has not yet been alleviated. The futures price of nickel and stainless steel are trending strong, steel mills are willing to pull up, and the agents are reluctant to sell. The overall price of 304 stainless steel has been trending well recently.





-----------------------------------------------------------------------------------Stainless Steel Market Summary in China-------------------------------------------------------------------------------------

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