304/2B: The average price of 2.0*1219*C (slit edge) of ZPSS in the Wuxi market is US$1,845/MT(plus taxes) which is US$46/MT lower than last week and the declining percentage is 2.3%. Besides, the average price of 2.0*1219*C(slit edge) in the Foshan market is US$1,885/MT(plus taxes) which is also US$46/MT lower than last week and the declining percentage is 2.25%.
304/2B: This week, the average price of 2.0*1240*C(mill edge) of Hongwang in the Wuxi market is US$1,700/MT(plus taxes) which is US$49/MT lower than last week and the declining percentage is 2.66%. What's more, the average price of 2.0*1240*C(mill edge) in the Foshan market is US$1,685/MT(plus taxes) which is US$39/MT lower than last week and the declining percentage is 2.14%.
304/No.1: The average price of 4.0*1520*C (mill edge) of ESS in the Wuxi market is US$1,650/MT(plus taxes) which is US$30/MT lower than last week and the declining percentage is 1.71%. Furthermore, the average price of 4.0*1520*C(mill edge) in the Foshan market is US$1,685/MT(plus taxes) which is US$29/MT lower than last week and the declining percentage is 1.59%.
316L/2B: This week, the average price of 2.0*1219*C of TISCO in the Wuxi market is US$2,690/MT(plus taxes) which is US$66/MT lower than last week and the declining percentage is 2.23%. Moreover, the average price of 2.0*1219*C(slit edge) of TISCO in the Foshan market is US$2,740/MT(plus taxes) which is US$66/MT lower than last week and the declining percentage is 2.19%.
316L/No.1: This week, the average price of 4.0*1500*C(mill edge) of ESS in the Wuxi market is US$2,445/MT(plus taxes) which is US$37/MT lower than last week and the declining percentage is 1.41%. 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$41/MT lower than last week and the declining percentage is 1.54%
201/2B: This week, the average price of 1.0*1219*C(mill edge) of the Wuxi market is US$1,040/MT(plus taxes) which is US$24/MT lower than last week and the declining percentage is 2.28%. Besides, the tax-inclusive average price of the Foshan market is US$1,035/MT(mill edge) which decreases by US$23/MT compared to last week and the declining percentage is 2.16%.
J2, J5/2B: The average price of 1.0*1219*C(mill edge) of the Wuxi market is US$990/MT(plus taxes) which is US$26/MT lower than last week and the declining percentage is 2.55%. Besides, the tax-inclusive average price of the Foshan market is US$980/MT(mill edge) which decreases by US$24/MT compared to last week and the declining percentage is 2.43%.
430/2B: The average price of 2.0*1219*C(slit edge) of TISCO in the Wuxi market is US$1,090/MT(plus tax), which is US$17/MT lower than last week and the declining percentage is 1.54%. The average price of 2.0*1219*C(slit edge) in the Foshan market is US$1,090/MT(plus taxes) which decreases by US$16/MT compared to last week and the declining percentage is 1.41%.
Mills: No more price drop!
This Monday(23rd, March), the stainless steel market was again crumbled by the Tsingshan series whose opening price reduced $57/ton. Although Tsingshan dropped the price largely, it seems that it did not lead to the market price to drop, but followed the market trend.
Since last Thursday, 304 stock price has been in a downturn, resulting in that most of the 304 stock price is lower than the price of cold-rolled and hot-rolled stainless steel of Tsingshan. A typical example is cold-rolled 304 whose stock price falls to $1,620-$1,630/ton and hot-rolled 304 is reduced to $1,635/ton.
Did panic attack the market after the mills give out the opening price?
Not at all! Today (24th, March)after Tsingshan decreased by $57/ton, only an agent followed suit and decreased by $14/ton and cold-rolled 304 of Foshan Lisco is priced at $1,605/ton.
In today’s Wuxi and Foshan market of 304, most agents still give out a usual quotation, while some businesses quoting high prices also reduce the price.
Like in the Wuxi market, today, 4-feet mill edge base prices of Hongwang, Chengde, Delong ranged from $1,620/ton to $1,630/ton; 5-feet mill edge base price of Ess, Delong, and Guangqing is $1,630/ton. As for the Foshan market, on 24th, March, the base price of Hongwang and Chengde was $1,630; the 4-feet mill edge of Yongjin and Shangke was $1,670/ton. For the quotation of the hot-rolled product, wide plate agents remain, and Tsingshan, Chengde quoted $1,630/ton for 4-feet mill edge.
About 201 quotations, on 24th March, Tsingshan’s opening price knocked off $14/ton, but the price maintains at the same level as the market stock price. Therefore, most agents remained their prices after Tsingshan’s drop, like 201/2B of Hongwang and Chengde priced at $1,010/ton mainly.
Last Friday (20th, March), some wanted to buy in at a low price.
The record low price in the recent 10 years is $1,490/ton quoted of the private owned 304/2B of 4-feet in February 2016. Comparing to the price of private-owned cold-rolled 304 which is $1,620/ton now, the difference between only leaves $143/ton.
Last Friday, because of the rebound of LME(nickel), some downstream buyers tended to buy in at a low price which was already beneficial to them.
However, on Monday(23rd, March), mills dropped their prices greatly, making the buyers chose to wait and see. In the afternoon, in the Wuxi market, the base price of private-owned cold-rolled 304 was adjusted to $1,620/ton by traders and the transactions were in a positive tendency.
Mills: Too much loss and no more dropping price.
Some sources saying that some mills have announced to their agents that the mills have in a loss state, so there will be no more price drop in any way that they buy the products or not.
Mills’ concern is the high cost of raw materials. They think that the stainless steel price is falling, but the cost of raw materials remains, plus, maintenance and reduced production is taking in March, meaning that the following products will decrease in quantity.
While agents and traders hold the opposite idea. They think that the price is changed according to the market situation. If the product selling is in a dilemma, only lowering the price can maintain a stable capital flow. Throwing back to 2008, the market was trapped into a lack-of-buyer situation and the reason was the same—— high cost maintains the price.
To sum up, the market is entering a key moment. We have noticed that Delong which had kept reducing the price did not cut the suggested price on Monday. Tsingshan is also losing but still cut the price. So do traders and agents, sacrificing profit margins to gain and maintain the capital flow. At the end of the day, the future price is decided by how the downstream buyers react to it.
Raw Materials|| Crumble again, knocking off $571/ton in a week
Molybdenum's price has fluctuated these days. Price crashing comes after price boosting, making it difficult to predict. Since March, the price of molybdenum has been in several rounds of increase and decrease, but from a broader perspective, the main tone of the decline has not changed.
Last week, domestic 60-base molybdenum price again suffered from a crush. The main price decreased from $15000/ton to $14428/ton, losing $571/ton.
The molybdenum price drop arose by the sharp declining price of molybdenum concentrate. By now, the price of molybdenum concentrate has cut off $14/tonne in a week and a drastic decrease of $9/tonne in a day.
Another factor is related to the consequent downside international price of molybdenum raw material. The cheaper molybdenum raw material imported to domestic market affects the price stability.
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