According to SteelHome China Steel Price Index (SHCNSI), steel price index closed at 97.53 points (4,219 yuan) on 28 June 2019, up 1.64% week on week or 1.91 points (83 yuan) from last week. Stainless steel price index (SHCNSI-SS) closed at 65.7 points (14,400 yuan), up 0.85% week on week or 0.39 point (85 yuan) from last week.

By Friday, average price of 2.0mm 304/2B cold rolled stainless steel in eight Chinese cities closed at 14,600 uan/t, up 62 yuan/t from last weekend; that of 2.0mm 430/2B cold rolled stainless steel closed at 7,975 yuan/t, unchanged from last weekend; that of 2.0mm 201/2B cold rolled stainless steel (plate) closed at 7,463 yuan/t, up 25 yuan/t from last weekend; that of 6.0mm 304/NO.1 hot rolled stainless steel closed at 13,600 yuan/t, up 75 yuan/t from last weekend; and that of 10.0mm 304/No.1 hot rolled stainless steel closed at 13,994 yuan/t, up 75 yuan/t over last weekend.

In the given time, stainless steel price saw both stability and hike. Among them, in Wuxi market, 304 cold rolled stainless steel and 304 hot rolled stainless steel price was increased by 100 yuan/t, while 201 cold rolled stainless steel and 430 cold rolled stainless steel price was stable; in Foshan market, 304 cold rolled stainless steel and 304 hot rolled stainless steel prices respectively hiked by 100 yuan/t and 200 yuan/t against stability of 430 cold rolled stainless steel and 201 cold rolled stainless steel prices. Stainless steel price was boosted amid hike of nickel price.

From steel mills aspect, by the end of Friday, except stability of Ansteel LISCO’s daily price, daily price of TISCO was cumulatively hiked by 50 yuan/t, that of Eastern Special Steel was cumulatively hiked by 250 yuan/t, that of Hongwang Stainless Steel was cumulatively hiked by 150 yuan/t and weekly price of JISCO was hiked by 100 yuan/t. From raw material aspects, LME nickel futures price continued to rise. As of Thursday, three-month LME nickel futures price closed at 12710 dollars/t, up 410 dollars/t in a week. From transaction aspect, traders in main markets began to lift their offers due to supported steel price by mills and a rise of nickel price, however, downstream demand was slack as the end of June was approaching. Of this, partial traders kept their offers stable to get cost back.

SteelHome predicts that stainless steel price is more likely to be hiked by 100-200 yuan/t in the next week.

Table 1: Average Price of Stainless Steel at 8 Chinese Major Markets on 28 June 2019

Table 2: China’s Stainless Steel Market Price (Unit: yuan per tonne)

Raw material

Nickel

Nickel futures price vibrated at a high level. By Friday, 1# electrolyzed nickel price in spot market was 103,025 yuan/t, up 3675 yuan/t in a week (21 June). By Thursday, LME three-month nickel futures price closed at 12,710 dollars/t, up 410 dollars/t in a week.

As increasing risk of global trade, WTO warned that global trade growth is expected to slow down in the second quarter of 2019. At the same time, IMF and other organizations cut their expectation for global economy growth. Of this, negative atmosphere of macro situation dragged down nickel market.

It was said that miners in Indonesia resumed shipment as weather gradually improved, so nickel ore inventory at ports is expected to increase. At present, the profit of nickel pig iron metallurgy both at home and Indonesia, which will drive plants to finish construction project. Although nickel price was strong, terminal demand was still weak. Facing oversupply and shrinking demand, nickel price is expected to fall.

SteelHome predicts nickel price will go downtrend dragged down by pessimistic expectation.

Stainless Steel Mills

1.     JISCO: JISCO Group signed strategic cooperation agreement with Jinchuan Group.

2. Xining Special Steel: Chairman of Xining Special Steel expressed that products produced by the Company were mainly used in automobile, machinery, railway etc. fields. At the same time, the company attached importance to developing new products applied to auto, ocean, railway, oil and military etc.

Downstream Industry:

Real estate: To stabilize house price is the tone in 2019. In mega-cities and big cities with large population inflows and high house prices, we should actively invigorate existed land and speed up the construction of rental housing.

SteelHome Dynamic:

SteelHome App Officially Launched

SteelHome Database (2019 Version) Launched

SteelHome Products & Services

Summary of SteelHome Spring Report

Invitation to China Steel Industry Summit for 2020 Market