Chinese stainless steel scrap traders watching the market
2015-12-23 09:09:24 [Print]
BEIJING (Asian Metal) 23 Dec 15 - The stainless steel scrap price fails to go up and keeps stable in China at the moment, though that for raw material rebounded slightly recently. Meanwhile, most traders hold wait-and-see attitudes towards the market outlook. Insiders foresee a flat price in following two or three days.
A trader in Foshan, Guangdong Province offers RMB8,500/t (USD1,312/t) VAT included for 304 casting scrap, the same as last trading day.
The source does not plan to adjust his quotations in the near future, with wait-and-see attitude towards the market prospect. To avoid potential risks, he refuses to build any stocks at the moment and will purchase directly when received orders from end users. Meanwhile, he states that some of his regular clients begin to prepare materials for the consumption during the holiday of the Lunar New Year (February 7-13, 2016) and his sales volume is estimated to be 300-400t in December, against 200t in October and November respectively.
Another trader in Dainan, Jiangsu Province quotes RMB6,600/t (USD1,019/t) 8-10% VAT excluded for 304 solid scrap, unchanged over last trading day.
With a low stock of 50t in hand at the moment against 110t at the beginning of the year, the source thinks the stainless steel scrap price is hard to rise in the short term, though the price of nickel at LME has rebounded by USD270/t in recent two days. Noted by him, although the overall stainless steel scrap stock runs at a low level, the continuous weak demand from downstream industries restrains the price from increasing. “More than one third of my end users have halted production by now and they are unlikely to restart before the Lunar New Year (February 8, 2016),” he adds.
A trader in Foshan, Guangdong Province offers RMB8,500/t (USD1,312/t) VAT included for 304 casting scrap, the same as last trading day.
The source does not plan to adjust his quotations in the near future, with wait-and-see attitude towards the market prospect. To avoid potential risks, he refuses to build any stocks at the moment and will purchase directly when received orders from end users. Meanwhile, he states that some of his regular clients begin to prepare materials for the consumption during the holiday of the Lunar New Year (February 7-13, 2016) and his sales volume is estimated to be 300-400t in December, against 200t in October and November respectively.
Another trader in Dainan, Jiangsu Province quotes RMB6,600/t (USD1,019/t) 8-10% VAT excluded for 304 solid scrap, unchanged over last trading day.
With a low stock of 50t in hand at the moment against 110t at the beginning of the year, the source thinks the stainless steel scrap price is hard to rise in the short term, though the price of nickel at LME has rebounded by USD270/t in recent two days. Noted by him, although the overall stainless steel scrap stock runs at a low level, the continuous weak demand from downstream industries restrains the price from increasing. “More than one third of my end users have halted production by now and they are unlikely to restart before the Lunar New Year (February 8, 2016),” he adds.
