304/2B: The average price of 2.0*1219*C (slit edge) of ZPSS in the Wuxi market is US$2,320/MT(plus taxes) which is US$52/MT higher than that of last week, and the increasing percentage is 2.10%. Besides, the average price of 2.0*1219*C(slit edge) in the Foshan market is US$2,365/MT(plus taxes) which increases by US$52/MT, and the increasing percentage is 2.06 %.
304/2B: The average price of 2.0*1240*C (mill edge) of Hongwang in the Wuxi market is US$2,185/MT(plus taxes) which is US$44/MT higher than last week and the increasing percentage is 1.90%. Besides, the average price of 2.0*1240*C (mill edge) of Hongwang in the Foshan market is US$2,150/MT(plus taxes) which decreases by US$8/MT compared with last week and the decreasing percentage is 0.34%.
304/No.1: The average price of 4.0*1520*C (mill edge) of ESS in the Wuxi market is US$2,145/MT(plus taxes) which increased by US$30/MT compared with last week and the rising percentage is 1.31%. Furthermore, the average price of 4.0*1520*C (mill edge) in the Foshan market is US$2,165/MT(plus taxes) which increased by US$30/MT compared to last week, and the increasing percentage is 1.30%.
316L/2B: This week, the average price of 2.0*1219*C of TISCO in the Wuxi market is US$3,150/MT(plus taxes) which increased by US$59/MT compared with last week and the increasing percentage is 1.76%. Moreover, the average price of 2.0*1219*C(slit edge) of TISCO in the Foshan market is US$3,180/MT(plus taxes) which increases by US$47/MT compared with that of last week, and the increasing percentage is 1.37%.
316L/No.1: This week, the average price of 4.0*1500*C(mill edge) of ESS in the Wuxi market is US$2,975/MT(plus taxes) which is US$63/MT higher than last week and the increasing percentage is 1.96%. What's more, the average price of 4.0*1500*C(mill edge) in the Foshan market is US$2,985/MT(plus taxes) which increased by US$34/MT compared to last week and the increasing percentage is 1.08%.
201/2B: This week, the average price of 1.0*1240*C(mill edge) of Hongwang in the Wuxi market is US$1,335/MT(plus taxes) which is US$19/MT more than last week and the rising percentage is 1.38%. Besides, the tax-inclusive average price of the Foshan market is US$1,330/MT(mill edge) which is US$31/MT lower that last week and the declining percentage is 2.31%.
J5/2B: The average price of 1.0*1240*C(mill edge) of the Wuxi market is US$1,295/MT(plus taxes) which is US$17/MT higher than last week and the rising percentage is 1.31%. Besides, the tax-inclusive average price of the Foshan market is US$1,295/MT(mill edge) which decreases by US$38/MT and the decreasing percentage is 2.85%.
430/2B: The average price of 2.0*1219*C(slit edge) of TISCO in the Wuxi market is US$1,520/MT(plus tax), which is US$19/MT higher than last week and the rising percentage is 1.20%. The average price of 2.0*1219*C(slit edge) in the Foshan market is US$1,495/MT(plus taxes) which increased by US$25/MT and the rising percentage is 1.63%.
Situations burst out. Steel mills’ orders got rejected. 304 is still on a rise.
On Monday(January 18th), there was news saying that a giant steel mill producing 304 will reduce the production in January because of the hindered supply of Ferrochromium. Rumor also has it that this steel mill will postpone the delivery of products that were signed to be done in January to February.
Undoubtedly, earlier on January 18th, the guidance price of 304/2B in the Wuxi and Foshan market both increased to US$2,150/MT, and no discount was given.
It is closing to Chinese New Year, but the situations never stop—— orders got rejected, delivery by sea was hindered, electric power was limited, transportation was controlled and prolonged, etc. All these factors result in the insufficient supply of raw materials and increasing cost, which push up the price of raw materials.
Problems happened in the supply side of the raw materials.
Lately, a steel mill located in Eastern China has purchased the high ferronickel in US$175/nickel (tax inclusive, deliver to the factory), and the volume is more than 10 thousand tons, supplied by several Chinese factories.
As we know, this steel mill was used to acquire ferronickel from Indonesian suppliers. But due to the problem that happened in the Indonesian shipment and the urgent need for the raw material stock supply, the mill has to have the raw material within this week and turn the purchase to the Chinese suppliers.
On January 15th, Whlanchabu City of Inner Mongolia Province has announced that the furnace under 25000kva has to shut down, and the totally enclosed furnace under 25000kva has a power rationing that limits down by 20%.
Moreover, affected by the resurgence of the epidemic in Hebei Province and partly Beijing area, the traffic has been in control. Plus the cold weather has made the logistic stopping service in advance in the area. Freight has risen highly.
In detail, the freight of chrome ore delivered from Tianjin Port to the Fenzhen area in Inner Mongolia has increased by USD8/MT, and to Shanxi, the freight has risen by about US$5/MT.
Downstream buyers are stocking up stainless steel.
Recently, some local governments like Jiangsu and Zhejiang advocate people to spend their holidays locally as a measure to control the epidemic. To keep the people who mostly are migrant workers, the remedies and rewards will give to them if they stay in town and work during holidays.
As some downstream buyers mention that the Chinese New year of 2021 is different from before because the production will still run on holidays, which is to keep their migrant workers in town, and thereby they have to stockpile the stainless steel materials.
Some other buyers worry about the shortening inventory. They said: “The steel mills have already postponed the delivery. We are afraid that there will be no inventory of materials, so we are now looking for more materials as our backups. The price is not going to fall before Chinese New Year, I suppose.”
The stock product of 304 again increased.
The opening price of the stock product was already high. Some specifications are still in shortage. 304 increased the price for the second time and it increased by US$16/MT approximately.
In the Wuxi market, Delong and Chengde have increased the base price of the 4-feet mill-edge product to US$2,165/MT (US$2,235/MT in 2.0 slit); the base price of 4-feet mill-edge products by Yongjin still remained at as high as US$2,190/MT (US$2,275/MT in 2.0 slit). As for the hot rolling 304 by the private-owned mills, it also rose to US$2,190/MT.
Summary:
With the holidays getting close in the logistic industry, the downstream of the stainless steel industry has been stocking proactively. The low-price resources that have been ordered previously are defaulted or postponed; some specifications are in short, and now the raw materials are having problems. Will all these situations postpone the delivery again? Or will the steel mills send the high-price orders in priority? Anyway, the price of 304 may stay in the increasing tune.
Market|| A new round for the increasing price of 201.
The increase may be late but will never absent. Last week, the hot rolling 5-feet 201 has maintained the price for a week. Until last Saturday (January 16th), the price made a breakthrough and started to increase.
Earlier, the base price of cold rolling 4-feet mill-edge 201 was quoted at around US$1,305/MT. The mainstream base price of J2 and J5 were around US$1,265/MT. As for the hot rolling 5-feet products, it increased by US$8/MT, quoted at about US$1,270/MT.
What keeps the price going up?
What leads to the increase in price? Many traders said that the market has been lack inventory. And some had a good transaction on Saturday.
Being out of stock is one of the greatest supports for 201 to stay at a high price. Besides, according to the feedback from the market, the transaction of the hot rolling 5-feet products was considerably great on last Saturday. Last week, the forecasts about the increasing price were overwhelmed in the market, so the increase is no surprise to us.
According to the feedback from the market, 201 was in a good transaction on January 19th. The transaction turned good because some downstream buyers need to stock up, but it still far less than the transaction a few months ago. After all, it is close to the holiday season.
Summary:
Steel mills have their products arrived, but they are in small amount, which is consumed as soon as the products thrown in the market. Thus, 201 has always been out of stock. While it is getting to the holiday, 201 still made the price rise. It is indeed a success.
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