Asian stainless steel prices suffer resistance, offer may continue to rise

July 7 MetalBiz-The offer of East Asian 304 CR stainless steel plate delivered in the following 1-2 months on June 29 in this week maintains at US$2450-2500 / tonne CFR China interval, but the Chinese buyers are unwilling to accept the higher offer. Nevertheless, it was learned that stainless steel sheet prices still continue to rise.

Due to the rising prices for several weeks, the Chinese buyers show their emotional concern, the transaction in this week is not active. A Taipei trader said, the Chinese buyers compete for the auction below the current market price levels. He pointed out that some customers bid price at US$2350 / ton, in this case, he would have preferred to sell to the Southeast Asian region at a higher price, instead of abandoning the Chinese market.

A trader in southern China stated that the demand still come from traders and inventory dealers, not the end-users. He expressed that currently stock is being established in the market, but not same in all areas, the transaction volume in actual market participated end-users is not high.

Even so, the stainless steel plants are expected to continue to adjust up the quotation due to still high nickel prices. The close price of nickel at London Metal Exchange on July 2 stood at US$16,180 / tons, up around over US$800 / ton than the previous week. China's largest nickel maker, Jinchuan Nickel Group also on July 2 increased the domestic price by 7,000 yuan / ton (US$1025 / tons) to 122,000 yuan / ton (US$17,856 / ton). The last time to increase price is at early in June.