Weekly Average Price|| A week of insanely increasing price. -- Stainless steel Market Summary in China(3rd, Aug – 7th, Aug)


304/2B: The average price of 2.0*1219*C (slit edge) of ZPSS in the Wuxi market is US$2,015/MT(plus taxes) which is US$49/MT higher than last week and the rising percentage is 2.38%. Besides, the average price of 2.0*1219*C(slit edge) in the Foshan market is US$2,055/MT(plus taxes) which is also US$49/MT higher than last week and the increasing percentage is 2.34%.

304/2B: The average price of 2.0*1219*C (slit edge) of Hongwang in the Wuxi market is US$1,965/MT(plus taxes) which is US$66/MT higher than last week and the rising percentage is 3.27%. Besides, the average price of 2.0*1219*C(slit edge) in the Foshan market is US$1,945/MT(plus taxes) which is US$68/MT more than last week and the increasing percentage is 3.46%.

304/No.1: The average price of 4.0*1520*C (mill edge) of ESS in the Wuxi market is US$1,880/MT(plus taxes) which increased by US$51/MT compared with last week and the rising percentage is 2.64%. Furthermore, the average price of 4.0*1520*C(mill edge) in the Foshan market is US$1,885/MT(plus taxes) which is US$33/MT higher than last week and the increasing percentage is 1.72%.

316L/2B: This week, the average price of 2.0*1219*C of TISCO in the Wuxi market is US$2,715/MT(plus taxes) which rises US$20/MT compared with last week and the increasing percentage is 0.71%. Moreover, the average price of 2.0*1219*C(slit edge) of TISCO in the Foshan market is US$2,770/MT(plus taxes) which increases by $20/MT compared with last week, and the rising percentage is 0.69%.

316L/No.1: This week, the average price of 4.0*1500*C(mill edge) of ESS in the Wuxi market is US$2,545/MT(plus taxes) which is US$49/MT more than last week and the increasing percentage is 1.86%. What's more, the average price of 4.0*1500*C(mill edge) in the Foshan market is US$2,565/MT(plus taxes) which increases by US$44/MT compared with last week and the rising percentage is 1.62%.

201/2B: This week, the average price of 1.0*1219*C(mill edge) of Hongwang in the Wuxi market is US$1,065/MT(plus taxes) which is US$4/MT more than last week and the increasing percentage is 0.27%. Besides, the tax-inclusive average price of the Foshan market is US$1,070/MT(mill edge) which increases by US$4/MT compared to last week and the increasing percentage is 0.27%.


J2, J5/2B: The average price of 1.0*1219*C(mill edge) of the Wuxi market is US$1,020/MT(plus taxes) which is US$10/MT higher than last week and the increasing percentage is 1.01%. Besides, the tax-inclusive average price of the Foshan market is US$1,025/MT(mill edge) which increases by US$3/MT compared with last week and the increasing percentage is 0.29%.

430/2B: The average price of 2.0*1219*C(slit edge) of TISCO in the Wuxi market is US$1,075/MT(plus tax), which is US$10/MT higher than last week and the rising percentage is 0.95%. The average price of 2.0*1219*C(slit edge) in the Foshan market is US$1,080/MT(plus taxes) which increased by US$20/MT and the rising percentage is 1.92%.



FUTURES|| US Non-farm data is better than expected. The futures of LME nickel and stainless steel dropped greatly from the previous high point.



Last Friday(7th, Aug), US Non-farm Payrolls released. In July, the non-farm employed population increased by 1,763 thousand which is beyond the expectation of 1,600 thousand. The unemployment of July increased to 10.2%, larger than the prediction of 10.5% and the June unemployment rate was 11.1%. Although the unemployment rate reduced compared with the rate of March, it is still larger than the highest unemployment rate during the 2008 financial crisis.

Thanks to the positive data of US Non-farm Payrolls, US dollar Index was boosted last Friday(7th, Aug), increased by 0.67% within a day, and the consecutively falling trend is over. But the non-ferrous metals crumbled because of the increasing US Dollar Index. LME copper cut down 3.84% within a day; LME nickel dropped off $85 and decreased to $14,370/MT. The decrease continues to Monday(10th Aug), which knocked down $195, and until then it was $14,175/MT. the price of stainless steel futures also dropped from the previous high point.   


The investment is fleeing. The stainless steel futures price dropped from high.

On Tuesday(11th, Aug), all contracts of the stainless steel futures reduced in price. Until 11th August, stainless steel 2010 decreased by $34/MT to $1,965/MT. Stainless steel 2008 also dropped by $24/MT to $2,020/MT. Indicated from the order situation, the capital continues to flee. 2010 contract position reduced by more than 1,400 lots, and all contract positions fell by more than 1,200 lots.   
 

People believe that after the forced selling, the market will be back to normal gradually. Many profited orders left, which caused pressure on the order. Driven by profit, the production of mills will keep at high. It is predicted that in August, the production volume will increase by 52 thousand tons and reach 2,603 thousand tons which breaking the record high. The supplying end will be pressured.



RAW MATERIALS|| Cloudburst stroke, two giant mines stopped working, ferromolybdenum price increased.

Last week, the cloudburst stoke. The roads and mine transmission pipelines in the Jinduicheng Molybdenum Mining Area, the largest molybdenum company in the industry, were damaged, resulting in the temporary suspension of production at the two major concentrators of the mining and metallurgical branch of the company. 



According to industry sources, it will take 1-2 weeks for the damaged parts to be repaired and will affect about 60% of the company's total production capacity of molybdenum concentrates. The average monthly production of molybdenum concentrates from January to July is nearly 2,500 tons.

The company is able to accept orders for more than 3,000 tons of ferromolybdenum per month, which is equivalent to the output of three large ferromolybdenum plants. The shutdown of the two mines will affect about half of the ferromolybdenum output.

Affected by this, the price of ferromolybdenum continues to rise. On 11th, August, the mainstream ferromolybdenum ex-factory price rose by $146/60 basis ton to $12,809/60 basis ton, and the price of molybdenum concentrate rose by $1/ton, and the 47% grade molybdenum concentrate reaches $183/ton.

The molybdenum raw material market has reappeared in buying at increasing prices. Recently, the number of purchases of steel mills has increased, and the bidding volume has continued to be enlarged. It is reported that the current bidding volume for ferromolybdenum has exceeded 5,000 tons.

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