As the LME nickel values rise the hopes for the stainless prices are lifting as well. In particular, the stainless distributors expect prices to go up during July. Lately, the LME nickel prices reentered into $14,000 a ton range firstly since August last year, moving up rapidly renewing a record high. On July 18, the LME nickel prices posted $14,685 a ton on a cash official basis, while three months at $14,730 a ton respectively.
The recording of $14,000 a ton level for nickel price is the first time in eleven months sicne August 10, 2018 of $14,060 a ton. The average monthly price of the LME nickel was $13,307.3 a ton on July 18, which succeeded in entering into $13,000 a ton range in four months since March when they were $13,071.3 a ton, while represented a $1,067.3 a ton hike compared to average in June.
Taiwan’s YOUSCO and Tang Eng also are said to ponder the price increase over the August shipment considering the additional nickel; price hikes.
Meanwhile, import materials are expected to affect the domestic stainless prices on the distribution channels because of the stronger dollar values and Tsing Shan Steel’s higher import offers. The domestic stainless importers implemented the price increase by 20,000~50,000 won a ton ahead of the domestic producers to brace for the poor profitability.
The domestic distribution prices for stainless 304 series hot rolled sheet and strip are formed around 2,500,000~2,600,000 won a ton and 304 cold rolled sheet and strip at around 2,600,000~2,70,000 won respectively as of the middle of July. The imported materials are traded for 300,000~400,000 won a ton lower than the domestic product prices ad idem.
Lately, Indonesian government announced to restrict the mining business, and the investigation carried out by the Philippines government on the mining industry is said to influence the LME nickel prices. The LME nickel destocking to the level of 140,000 tons is known to largely affect the hikes of nickel prices in particular. The LME nickel stock collapsed 150,000 tons range on July 16 approaching 149,322 tons, and destocking continued on July 17 to 148,374 tons.
Source: Steel&Metal News |
