Nickel Price Increased, Purchase of East Asia Stainless Steel Cold Rolling Is Increased

According to foreign intermediary reports, because nickel price in last week increased over 18000 USD/ton, purchase of East Asia made 304/2b 2mm stainless steel cold rolling is also increased. However, the transaction price slightly decreases, from two weeks ago 2800-2850 USD/ton to 2780-2850 USD/ton (CFR, China). Taiwan made SS cold rolling quoted still at 2800-2850 USD/ton (CFR, China). But buyer says that real transaction price is near 2800 USD/ton and even lower. Moreover, consider that current quotation is very low, the validity of quotation from some exporters in very short, probably 1-2 days. Korea made SS cold rolling quoted still at 2900-2950 USD/ton, but some traders said that compare to two weeks ago, sellers seem to accept lower price than quotation. Estimate that both sides will soon reach a consensus. Because cost of production is very high, compare to Korea and Taiwan competitors, Japanese steel factories not intended to decrease quotation. However, due to current situation of market, Japanese manufacturer newly quoted at 2950-3000 USD/ton, it is lower than the November's quotation at 3050-3100 USD/ton. Market participators considered that this demand improvement mainly caused by nickel price rebound and Chinese customers prepare stock for manufacturing after Spring Festival, also might because price is already decreased to the level that can be accepted by customers. However, the fluctuation of nickel price and European debt crisis lead to undefined situation of market, SS price possibly has downside risk. Source: steeljs.net