Chinese stainless steel market got some positive signals recently, which caused a futures increase in late October. However, physical prices are yet actually to rebound.
The latest export offers for 304 2B CR coils (2 mm) have been heard at around USD 2,100-2,200/t FOB on Monday, October 30. It was very similar to the level of two to three weeks ago. The high-end prices were mainly attributed to the material produced by major mills like Chinese POSCO (PZSS) and Hongwang. CR coils from Yongjin were available in the market at USD 2,120-2,150/t FOB, while the most competitive offers were coming from Delong – at around USD 2,100/t FOB – “this company can use cheaper Indonesian HR coils,” a trading source in the country told SMR. Some deals have been reportedly concluded even at USD 2,040-2,070/t FOB last week, but the parties did not confirm the information by the time of publication.
On October 30, STS prices on the Shanghai Futures Exchange (SHFE) increased for the second consecutive trading day, as positive macroeconomic news supported the trend. In particular, the news about the upcoming meeting of Xi Jinping and Baiden was seen in the market as a positive signal that the US-China conflict is starting to ease.
Compared to October 11, Chinese local prices for 304 2B CR coils (2 mm) slightly increased by RMB 200/t (USD 27/t) to RMB 15,000-15,200/t (USD 2,050-2,077/t). However, most market insiders noted that physical prices have not risen over the last week. “Some deal prices have even dropped recently, although some offers inched up following futures market,” a major Chinese STS maker said. Actual end-users’ demand remained subdued in late October. Traders are pretty cautious about replenishing their stocks, trying to keep them at relatively stable levels.
Many Chinese suppliers expressed hopes prices would grow in coming weeks, as “there should be more supportive news about economic development.
Post time: Nov-21-2023
