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CR Austenitic Stainless Sheets for China-The 17th China(Guangzhou) Int'l Stainless Steel Industry Exhibition
8/31/2015 Stainless Steel Exhibition |
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It is time when the Japanese mills of cold-rolled (CR) stainless steel sheets commence negotiations on CR austenitic stainless sheets for China for October shipment but most of them are in a stance to shelve negotiations.
It is usual that when it comes close to early autumn, demand for CR stainless sheets upsurges in China towards the Christmas in Europe and the USA. However, it is lack in upsurging at all this year. Orders from spot customers of the Japanese mills gathering in Hong Kong are not placed at all. Although there is demand modestly, inquiries to the Japanese mills are few. So, there is a high possibility for them to shift their orders to domestic mills in China. A mill source is observing that customers object to having inventory and begin to select Chinese products which can be secured soon domestically due to overproduction.
It is reported that Chinese stainless sheet mills have not curtailed production yet. Amid overproduction, they are likely to have adopted such system that they force aggressive sale to distributors and settle prices later. Distributors seem to be selling out of products at cheap prices for the domestic market.
For this reason, prices of CR austenitic stainless sheets in China continue to fall. The prices of them become the level of $1,800 in dollar equivalent excluding tax, and some are said to have dropped to the level of $1,700. In the export market, prices appear to have plunged into the level of $1,800 CFR.
Although costs of raw materials are reduced due to a fall in prices of nickel and there is an opportunity for export due to the weak yen for the Japanese mills of CR stainless sheets, they will be difficult to lower their prices to the level of $1,800 CFR as might be expected.
It has been long since spot orders from China have ceased. Orders from China had been necessary to maintain operations of facilities for the Japanese mills. However, as demand does not recover towards early autumn, the Japanese mills are likely to enter on a very though phase in export negotiations for shipments of the next quarter. -The 17th China(Guangzhou)
Int''l Stainless
Steel Industry Exhibition
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