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China’s domestic stainless steel prices rise following metal sanctions on Russia

It seems like the recent sanctions on Russia have had a notable impact on the stainless steel market, particularly in China and East Asia. Here’s a breakdown of the key points from the provided information:

  1. Domestic Stainless Steel Prices in China:
    • Prices for stainless steel cold-rolled coil 2mm grade 304 domestic, ex-whs China rose to 13,700-13,800 yuan per tonne.
    • Stainless steel mills raised their list prices of stainless corrosion resistance classes (CRC) to 13,700-13,900 yuan per tonne, but buyers were reluctant to accept the increase.
    • Nickel prices were expected to rise due to fresh metal sanctions on Russia, leading to expectations of a corresponding increase in stainless steel prices.
  2. Export Stainless Steel Prices from China:
    • Prices for stainless steel cold-rolled coil 2mm grade 304 export, fob China increased to $2,020-2,080 per tonne.
    • Exporters raised prices of stainless CRC following the increase in domestic prices, while stainless HRC export prices remained unchanged.
    • Export activity in type 300 stainless steel remained slow, with some exporters turning to other types such as 430/2B CRC.
  3. East Asian Imports:
    • Prices for stainless steel cold-rolled coil 2mm grade 304 import, cif port East Asia rose to $2,000-2,030 per tonne.
    • Prices for stainless steel hot-rolled coil grade 304 import, cif port East Asia also increased to $1,900-1,920 per tonne.
    • Indonesian exporters raised export prices due to the sanctions on Russia, but this led to decreased interest among East Asian buyers.

Overall, the sanctions on Russia have led to expectations of higher nickel prices, impacting the stainless steel market globally. However, downstream industries, particularly in China, remain weak, affecting the willingness of buyers to accept price increases. Additionally, export dynamics are influenced by both domestic price movements and global market conditions.

Read full story on Fastmarkets.com