304/2B: The average price of 2.0*1219*C (slit edge) of ZPSS in the Wuxi market is US$2,075/MT(plus taxes) which is US$10/MT lower than last week and the declining percentage is 0.43%. Besides, the average price of 2.0*1219*C(slit edge) in the Foshan market is US$2,115/MT(plus taxes) which is also US$10/MT lower than last week and the declining percentage is 0.429%.
304/2B: This week, the average price of 2.0*1240*C(mill edge) of Hongwang in the Wuxi market is US$1,955/MT(plus taxes) which is US$21/MT lower than last week and the declining percentage is 1.02%. What's more, the average price of 2.0*1240*C(mill edge) in the Foshan market is US$1,925/MT(plus taxes) which is US23/MT lower than last week and the declining percentage is 1.11%.
304/No.1: The average price of 4.0*1520*C (mill edge) of ESS in the Wuxi market is US$1,840/MT(plus taxes) which is US$4/MT lower than last week and the declining percentage is 0.23%. 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$7/MT lower than last week and the declining percentage is 0.37%.
316L/2B: This week, the average price of 2.0*1219*C of TISCO in the Wuxi market is US$2,975/MT(plus taxes) which remains the same as last week. Moreover, the average price of 2.0*1219*C(slit edge) of TISCO in the Foshan market is US$3,030/MT(plus taxes) which also maintains at the same price as last week.
316L/No.1: This week, the average price of 4.0*1500*C(mill edge) of ESS in the Wuxi market is US$2,645/MT(plus taxes) which remains at the same level as last week. What's more, the average price of 4.0*1500*C(mill edge) in the Foshan market is US$2,675/MT(plus taxes) which is US$12/MT lower than last week and the declining percentage is 0.41%.
LH/2B: This week, the average price of 1.0*1219*C(mill edge) of the Wuxi market is US$1,115/MT(plus taxes) which is US$4/MT lower than last week and the declining percentage is 0.39%. Besides, the tax-inclusive average price of the Foshan market is US$1,105/MT(mill edge) which increases by US$4/MT compared to last week and the rising percentage is 0.39%.
430/2B: The average price of 2.0*1219*C(slit edge) of TISCO in the Wuxi market is US$1,105/MT(plus tax), which is US$4/MT lower than last week and the declining percentage is 0.37%. The average price of 2.0*1219*C(slit edge) in the Foshan market is US$1,165/MT(plus taxes) which decreases by US$3/MT compared to last week and the declining percentage is 0.25%.
Reduction in Output! Supply for 300 Series is Estimated to Decrease by 15% in January
At the end of the year, mills have different strategies toward production. Some would expand production to increase the overall output, some finished maintenance, and back to regular production, and others arranged maintenance. Under these factors, the output of stainless steel flat crude steel slightly increased by 2.1% in December 2019. The output of 300 series of December became the lowest point in the year, while the output of 400 series broke the historical highest point.
During the Chinese Spring Festival in January, most mills have plans for maintenance, which is the reason for the decrease of stainless steel flat crude steel. The output is estimated to drop by 400 thousand tons to 1.948 million tons, of which wide coil will fall by 252 thousand tons, changing the regular pattern of the only decrease of the strip during Spring Festival
The Output in December: Slightly Rose but Remained Low
In December, the output of stainless steel flat crude steel is around 2.348 million tons which increased by 48 thousand tons and the rising percentage is 2.1% from November’s level; up 268 million tons and 12.9% on a year early.
The output of 15 wide coil manufacturers is 1.915 million tons which increased 18 thousand tons compared to last month and the rising percentage is 0.9%; up 281thousand tons and 17.2% against the previous year.
The output of crude steel by 17 strip manufacturers is 433 thousand tons which rose 31 thousand tons and 7.6% from November; 12 thousand tons and 2.8% less than December 2018.
The output of stainless steel flat crude steel (Unit: million tons)
In January, the output of stainless steel flat crude steel is estimated to be fell 400 thousand tons and decrease to 1.948 million tons compared to last month and the declining percentage will be 17%; year-on-year decrease by 15 thousand tons and the decreasing percentage will be 0.7%.
Supply for 300 Series Decreased by 15% in January
In December, the output of 300 series flat crude steel is about 991 thousand tons which was 2 thousand tons more than November and the rising percentage is 0.2%; year on year increased by 60 thousand tons and the ring percentage is 0.6%.
The output of 300 series stainless steel flat crude steel (Unit: million tons)
In January, it is estimated that the output of 300 series stainless steel flat crude steel will decrease by 153 thousand tons to 838 thousand tons and the declining percentage is 15.5%; year on year drop 5.7 thousand tons and 0.7%.
Why Does Series 300 Reduce its Output?
First of all, analyzed from the supply side, the reason for the estimated decreasing output of 300 series in January is that GQJS, Ess, Chengde plan in maintenance; Delong and other mills reduce production.
During the Spring Festival, like a norm, the output is defined to decrease. The output of 300 series in January is 6 thousand tons less than last January and the decreasing percentage is 0.7%. Also, paying attention to demand, it is also falling. According to a domestic stainless steel website, the apparent consumption of stainless flat steel in November fell by 6% year-on-year.
So, it is certain that the output reduces.
The Output of 200 Series Fell by 218 Thousand Tons in the Near 2 Months
In December, compared to November, the output of 200 series flat crude steel decreased by 10 thousand tons to 882.5 thousand tons and the declining percentage is 1.1%; year on year increased by 163 thousand tons, and the rising percentage is 22.6%.
The Output of 200 series stainless steel flat crude steel (Unit: million tons)
It is estimated that in January, the output of stainless steel flat crude steel will be 674.5 thousand tons, which decreased by 208 thousand tons and 23.6% from last month; year on year 57 thousand tons less than last year and the declining percentage is 7.8%.
In December, The Output of 400 Series Breaks the Historical Highest Point
Because some mills expanded the production of 400 series recently, the output of series 400 flat crude steel rose 13.5% from November’s level, increasing by 56 thousand tons to 474 thousand tons which hits the highest output ever; compared to last year December, it leaps by 100 thousand tons and the rising percentage is 26.7%.
The output of 400 series stainless steel flat crude steel (Unit: million tons)
In January, it is estimated that the output of 400seires will fall to around 436 thousand tons, which will decrease by 39 thousand tons compared to last month and the declining percentage is 8.2%; year on year increase by 48 thousand tons and the rising percentage is 12.4%.
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