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Weekly Average Price|| Weak Transaction VS Rising Price. Stainless Steel Market Summary in China (20th, July – 24th, July)

304/2B:The average price of 2.0*1219*C (slit edge) of ZPSS in the Wuxi market is US$1,940/MT(plus taxes) which decreases by US$4/MT compared with last week and the declining percentage is 0.21%. Besides, the average price of 2.0*1219*C(slit edge) in the Foshan market is US$1,980/MT(plus taxes) which is also US$4/MT less than last week and the decreasing percentage is 0.21%.

304/2B:The average price of 2.0*1219*C (slit edge) of Hongwang in the Wuxi market is US$1,870/MT(plus taxes) which is US$4/MT higher than last week and the rising percentage is 0.22%. Besides, the average price of 2.0*1219*C(slit edge) in the Foshan market is US$1,845/MT(plus taxes) which is US$3/MT less than last week and the decreasing percentage is 0.15%.

304/No.1: The average price of 4.0*1520*C (mill edge) of ESS in the Wuxi market is US$1,795/MT(plus taxes) which decreased by US$4/MT compared with last week and the declining percentage is 0.23%. Furthermore, the average price of 4.0*1520*C(mill edge) in the Foshan market is US$1,810/MT(plus taxes) which is US$1/MT higher than last week and the increasing percentage is 0.08%.

316L/2B: This week, the average price of 2.0*1219*C of TISCO in the Wuxi market is US$2,450/MT(plus taxes) which increases by US$4/MT compared with last week and the increasing percentage is 0.17%. Moreover, the average price of 2.0*1219*C(slit edge) of TISCO in the Foshan market is US$2,720/MT(plus taxes) which remains as last week.

316L/No.1: This week, the average price of 4.0*1500*C(mill edge) of ESS in the Wuxi market is US$2,450/MT(plus taxes) which remains as last week. What's more, the average price of 4.0*1500*C(mill edge) in the Foshan market is US$2,480/MT(plus taxes) which is US$3/MT higher than last week and the rising percentage is 0.11%.

201/2B: This week, the average price of 1.0*1219*C(mill edge) of Hongwang in the Wuxi market is US$1,050/MT(plus taxes) which is US$4/MT higher than last week and the rising percentage is 0.41%. Besides, the tax-inclusive average price of the Foshan market is US$1,050/MT(mill edge) which decreases by US$4/MT compared to last week and the decreasing percentage is 0.41%.

J2, J5/2B: The average price of 1.0*1219*C(mill edge) of the Wuxi market is US$1,005/MT(plus taxes) which is US$1/MT higher than last week and the increasing percentage is 0.14%. Besides, the tax-inclusive average price of the Foshan market is US$1,005/MT(mill edge) which increases by US$1/MT compared with last week and the increasing percentage is 0.14%.

430/2B: The average price of 2.0*1219*C(slit edge) of TISCO in the Wuxi market is US$1,060/MT(plus tax), which remains as last week. The average price of 2.0*1219*C(slit edge) in the Foshan market is US$1,050/MT(plus taxes) which increased by US$1/MT and the rising percentage is 0.14%.


Increase by $200. Will the price of 304 adjust for the second time?


 
The stock price did not stop increasing. LME Nickel and stainless steel futures kept breaking the new highest recently. On July 27th, LME Nickel closed at $13,800/MT which increased by $165 and broke the former highest point of $13,700/MT. Compared with $13,115/MT of July 17th, the closing price of 27th increased by $685 and the increasing percentage reaches 5.2%. Meanwhile, the stainless steel futures 2009 increased by $39/MT, closed at $1,885/MT, and the rising percentage is 2.0%.



According to the data above, the price trend of LME Nickel is of relatively stronger growth than stainless steel futures. 

 
How come LME Nickel grows stronger?

On one hand, the exchange rate is an important factor that affects the trade. Lately, the US dollar index has been in a slack trend. From July 17th to July 27th, the US dollar index decreased by 2.5%. For commodities balanced by the US dollar, the decrease in the US dollar will bring up the nominal value. During the same period, Shanghai Nickel only increased by 3.6%, which was weaker than LME Nickel. As for stainless steel futures, the price increasing trend was weaker comparatively. 



On the other hand, Tesla brought up hype about new energy, which affects the nickel market, triggering the investment on nickel, boosting the nickel price.


RAW MATERIALS|| Chrome Ore Price Dropped, Mills Profit Lost.

July is to end. The high chromium steel bid will soon begin. But this time, the negotiation on the purchasing price between the two parties will be more difficult, because the chrome ore futures price in South Africa cut down more than $23/MT.  



Last week, South African chrome ore (concentrate grade of 40-42%) quotation price dropped to $132/MT, making the ferrochrome market, which was in a weak state, worse.

It seems that the domestic production cost of ferrochrome will decrease greatly and so the steel bidding price will have a larger room for reducing the price.

However, it may not be the situation that some factories would welcome. Some manufacturers think that the ore price of $132/MT dropped way too much because it is a price of futures which means that the products won’t arrive until the end of October.

For now, most of the ferrochrome manufacturers stock with raw materials worth $155-165/MT and can support three-month production. If the high chrome purchasing price keeps going down, it will lead to a sever profit loss on the factories. Therefore, the two parties of purchasing and buying are still in a negotiation state on steel bidding of August. 

Some other factories tell that many factories had been in a loss state from January to May. Only when mills’ purchasing price increased by $170/50base ton in June, the loss eased slightly. 

However, this good situation did not last long. More high chrome began to produce in June, plants were in large-scale overhaul, purchasing demand reducing, and the supply of South African chrome ore is recovering. These are bad for the ferrochrome market, resulting in high chromium prices have continued to fall in the past month. Plants are back at a loss. 

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