Chinese stainless steel scrap prices show signs of decreasing
2016-08-30 08:46:34 [Print]
BEIJING (Asian Metal) 30 Aug 16 - Prices for stainless steel scrap declined by RMB100/t (USD15/t) in some Chinese domestic markets on Monday due to sharp price decrease of raw material and the slow market, while they kept temporarily stable in certain regions coupled with participants’ wait-and-see attitudes. The mainstream price of 304 solid scrap is RMB7,400-7,700/t (USD1,109-1,160/t) 8-10% VAT excluded. Insiders foresee nationwide price decline in the short term.
A trader in Baoding, Hebei province told Asian Metal that his price for 304 solid scrap is RMB7,400/t (USD1,109/t) 8-10% VAT excluded, decreased by RMB100/t (USD15/t) compared with last trading day.
Attributing the price decline to the decreasing raw material price, the source revealed that the price of nickel at LME has witnessed a total markdown of 6% in recent one week, weakening stainless steel scrap participants’ confidence in the market. Besides, with no firm order received in recent one week, against the sales volume of 160t last month, the source complained that the demand from downstream customers is rather weak at the moment. “End users nearby Hangzhou, Zhejiang province either halt or reduce production for the moment influenced by the hold of the G20 Summit, so they are not eager to place orders now,” explained the source, with a stock of 80t at hand, against 200t during the corresponding period of last year. He thinks the stainless steel scrap price will stop going down and stabilize in the near future seeing the overall low inventory.
Another trader in Dainan, Jiangsu province quoted RMB7,700/t (USD1,160/t) 8-10% VAT excluded for 304 solid scrap, similar to last trading day.
The source maintains price stable temporarily since most suppliers refuse to sell at lower prices for the moment. “It takes time for suppliers to accept the decreasing price since the stainless steel scrap price did not go up much in July-August when the price for nickel soared, but a slight price decrease is inevitable in the short term under the dull market,” explained the source. Though his sales volume can reach 800t in August, equaling to that in July, the profit margin shrinks much, and that’s why he is reluctant to cut prices down for the time being. Holding a stock of 600t at hand against the regular level of 800t, he does not plan to supplement it in the near future, not being so confident of the market outlook.
A trader in Baoding, Hebei province told Asian Metal that his price for 304 solid scrap is RMB7,400/t (USD1,109/t) 8-10% VAT excluded, decreased by RMB100/t (USD15/t) compared with last trading day.
Attributing the price decline to the decreasing raw material price, the source revealed that the price of nickel at LME has witnessed a total markdown of 6% in recent one week, weakening stainless steel scrap participants’ confidence in the market. Besides, with no firm order received in recent one week, against the sales volume of 160t last month, the source complained that the demand from downstream customers is rather weak at the moment. “End users nearby Hangzhou, Zhejiang province either halt or reduce production for the moment influenced by the hold of the G20 Summit, so they are not eager to place orders now,” explained the source, with a stock of 80t at hand, against 200t during the corresponding period of last year. He thinks the stainless steel scrap price will stop going down and stabilize in the near future seeing the overall low inventory.
Another trader in Dainan, Jiangsu province quoted RMB7,700/t (USD1,160/t) 8-10% VAT excluded for 304 solid scrap, similar to last trading day.
The source maintains price stable temporarily since most suppliers refuse to sell at lower prices for the moment. “It takes time for suppliers to accept the decreasing price since the stainless steel scrap price did not go up much in July-August when the price for nickel soared, but a slight price decrease is inevitable in the short term under the dull market,” explained the source. Though his sales volume can reach 800t in August, equaling to that in July, the profit margin shrinks much, and that’s why he is reluctant to cut prices down for the time being. Holding a stock of 600t at hand against the regular level of 800t, he does not plan to supplement it in the near future, not being so confident of the market outlook.
