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Forecasts and market analysis based on price assessments from Fastmarkets MB and Fastmarkets AMM

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January 2020 | Stainless Steels


Stock reductions and margin falls suggest the discounting is over: Asian Highlights


By our calculations, nickel costs, associated with nickel pig iron spot prices, have slipped by $22 per tonne to an equivalent of $1,009 per tonne in a 304 (8% ni) melt just as high carbon ferrochrome (HCFeCr) prices within China have fallen a further $3 per tonne (18% cr).

Stainless steel prices within China have continued to fall over recent weeks. According to Fastmarkets’ last assessment before the Chinese New Year festivities, average cold rolled (CR) 304 2mm 2b coil prices fell to 14,250 yuan per tonne, which is worth roughly $1,825 per tonne after excluding 13% sales tax. In comparison with our December issue, based on assessments made five weeks ago, prices at 14,700 per tonne on average were about $32 per tonne higher. Although the negative changes might seem comparatively modest, they have exceeded the equivalent erosion in key stainless steelmaking raw materials prices and therefore real-time conversion margins are once again in retreat.

By our calculations, nickel costs, associated with nickel pig iron spot prices, have slipped by $22 per tonne to an equivalent of $1,009 per tonne in a 304 (8% ni) melt just as high carbon ferrochrome (HCFeCr) prices within...

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