May 2012 | Stainless Steels
Chinese market weakens further on poor demand: Asian Highlights
Additionally, despite recognition in the market that high inventories will slow any market recovery and keep prices under pressure, stocks have not been brought down significantly.
The Chinese stainless market has taken a clear, step-down over the last month. This is a further reduction in sentiment from last month, when it became apparent that the Chinese market had weakened. Prices have also been hit by the weak demand. Taigang Stainless cut its domestic stainless steel prices for the third month running in June. Some of this cut is related to the falling nickel price, but the majority is a weak spot market. CR304 prices came off approximately Rmb300/tonne ($47/tonne). This means that prices have eased Rmb1845/tonne ($292/tonne) or 9.7% since the start of the year.Additionally, despite recognition in the market that high inventories will slow any market recovery and keep prices under pressure, stocks have not been brought down significantly. Instead they remain at the top end of historic levels. Starting in April, but extending in May, stainless mills announced output reductions in the wake of...
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