Stainless Steel Billet Prices Remain Low for Shipments; 304 Scrap Falls by 50 Yuan/Ton in the Afternoon

June 17, Foshan Market News: Last Friday, the London nickel price fell by 100 USD to 17,650 USD/ton, with positions at 196,856 lots, transactions at 5,455 lots, and inventory at 87,480 tons. As of 14:35 today, the London nickel is running around 17,474 USD/ton.

Market Quotations Remain Weak

Earlier today, Qingshan Steel Works lowered the 304 billet price, with some agents offering rebates, reporting Dingxin 304 narrow cold-rolled at 13,100 CNY/ton. As a result, the high-end price of Guangxi 304 narrow strip could not stabilize, with the low-end price around 12,700 CNY/ton including tax. For the 201 series, Qingshan Steel Works did not adjust the billet price, but some agents continued to offer discounts, with Dingxin 201 reported at 8,000 CNY/ton. Guangxi narrow strip has not yet seen a new low, but the bargaining range is generally between 7,750 to 7,800 CNY/ton including tax. In the afternoon, the market demand side continued to seek low-priced materials for inquiries. Looking at the scrap market, the afternoon quote for 304 scrap fell by 50 CNY/ton, with most transactions seen in bargaining.

304 Billet Material

Today, Qingshan Steel Works updated the billet price, which was reduced by 100 CNY/ton from the previous time. Specifically: 304 hot-rolled narrow strip at 13,200 CNY/ton, and large plates at 13,300 CNY/ton. Subsequently, the quotes from the agents under Qingshan Steel Works showed differences, with some offering rebates, reporting: Dingxin 304 cold-rolled narrow strip at 13,100 CNY/ton, 304L cold-rolled narrow strip at 12,600 CNY/ton, 304 hot-rolled large plates at 13,330 CNY/ton, and 304L hot-rolled large plates at 12,600 CNY/ton.

From the quotes, it can be seen that the market resource prices showed weakness due to the decline in Qingshan Steel Works' billet prices, coupled with some Qingshan agents' discount operations, leading to a 50-100 CNY/ton drop in high-end quotations. It is evident that the spot prices of Xunfeng and Jinhai held by traders are generally lower than the prices of the producing area agents, with tax-inclusive prices ranging from 12,700 to 12,750 CNY/ton, and future resources are more inclined to negotiate. For large plates, Guangqing, Beigang New Materials, and Delong quoted tax-inclusive prices ranging from 13,300 to 13,350 CNY/ton, and in the afternoon, Guangqing materials could be seen as low as 13,250 CNY/ton. During the day, low-priced resources had a strong demand for transactions.

201 Billet Material

Today, Qingshan Steel Works did not adjust the billet price, with some agents offering rebates, reporting: Dingxin J2 at 8,000 CNY/ton; J3 at 8,300 CNY/ton; J1 at 8,700 CNY/ton; J4 at 9,300 CNY/ton. Other market quotations include: Xunfeng J3, Jinhai J3, Zhongjin J5, Huale J3A tax-inclusive prices ranging from 7,750 to 7,850 CNY/ton, and tax-exempt prices from 7,250 to 7,300 CNY/ton. Beigang New Materials J5/J5D, Baosteel D4, Yongda J3E four and five feet tax-inclusive prices range from 7,900 to 8,000 CNY/ton.

From the quotes, it can be seen that due to the discount sales by Qingshan agents, the high-end quotations of market traders have fallen by 50 CNY/ton. Guangxi narrow strips have a more obvious difference in high and low prices, with some producing area agents not having a large change, with tax-inclusive prices ranging from 7,800 to 7,850 CNY/ton for negotiation. Some traders who make transactions in cash report tax-exempt prices of around 7,250 CNY/ton. For large plates, Beigang New Materials J5 material is slow to sell at a low price of 7,900 CNY/ton, and Baosteel T4 material is waiting for transactions at 7,830 CNY/ton.

Scrap Stainless Steel

Compared with last Friday, most of today's early market quotations were flat, with individual declines of 20-50 CNY/ton. However, by the afternoon, some 201 quotations were updated to fall by 20-50 CNY/ton. The current mainstream quotation range is: 201 new material at 5,700-5,800 CNY/ton, with some high positions at 5,850 CNY/ton and some low positions at 5,650 CNY/ton; 304 new material at 10,200-10,300 CNY/ton.

Today, despite the impact of the closing of last Friday's London and Shanghai nickel main contracts with a decline, the market's atmosphere of falling prices is relatively light. Most 304 merchants maintain a stable price for receiving goods, with only a few high positions updating the quotations to drop by 20-30 CNY/ton. The market's high and low price difference did not further expand and is still maintained at around 100 CNY/ton. In order to increase their own volume of goods received, some merchants have indicated "a larger volume can be priced higher, specific needs to be negotiated by phone."

By the afternoon, as the stainless steel futures market turned green, the atmosphere of falling prices in the market was strong. Some 304 merchants updated their quotations to lower by 50 CNY/ton for receiving goods, while others maintained the morning prices to wait and see, with most transactions seen in bargaining.