Excess Production Capacity Undermines Stainless Steel Prices

Excess Production Capacity Undermines Stainless Steel Prices

Stainless steel prices continue to show few signs of recovery. Selling values, in Europe, have been below producers breakeven levels since a collapse in transaction figures, and the widespread adoption of effective pricing, in the summer of 2018.

Moderate increases, in excess of rises in alloy surcharges, were reported in the ea rly months of this year. Now, the prospect of falling raw material costs, in combination with mediocre demand, is applying negative pressure to nominal basis figures.

Transaction values are also softening in the Far East, where activity is subdued, while production capacity continues to expand.

Section 232 action, in the United States, led to an immediate rise in domestic stainless steel prices, when first introduced. Since then, however, transaction values have fallen back to a level that is more in line with international markets.

The European Commissions safeguarding measures were planned to prevent a flood of imports, in the wake of the US governments actions, and have had little, if any, effect in boosting local prices, in the EU.

Market participants might expect a pricing boost from the value of one of stainless steels key raw materials, nickel. LME nickel stocks are at their lowest point in more than six years. Furthermore, with demand for nickel growing, due to expected consumption in the manufacture of batteries for electric cars, a deficit in supply of the metal is predicted, in the coming years.

Commodity prices, however, are influenced by a complex range of factors, beyond the market fundamentals for the particular material. It is in this context that nickel values are, currently, quite becalmed.

The main negative factor affecting stainless steel selling values remains production overcapacity. Producers in the established steelmaking regions have struggled to fill their schedules, in recent years. Now, with substantial new production capability coming on stream in countries including India, China, and Indonesia, it is difficult for sellers to make the case for increasing prices.

Is this the jungle law of the stainless steel market But more we need are positive energy

Is this the jungle law of the stainless steel market But more we need are positive energy!

As the saying goes:maybe, we can see the truth but we can’t get an insight into ones mind.

Recently, the differences between 304 and 304D stainless steel become a controversial topic.

The sales boom driven by the new 304D stainless steel has gradually faded away. Recently, the flat-panel merchants suddenly began a heated discussion, reminding customers to distinguish between 304 and 304D stainless steel clearly!                    

That makes quite a few material suppliers feel unacceptable.

New products made of 304D stainless steel are developed to meet the different needs and tastes of customers. And if people sell 304D stainless steel as 304 stainless steel, it is a matter of ethics and integrity.

However, many people responded that even if there is no 304D stainless steel, manufacturers will sell 304J3 stainless steel as 304J1 stainless steel and 304 stainless steel.

In fact, we should regard these phenomena as manifestations of the “law of the jungle.” No matter how strong the lion is, it will not actively attack the hyena unless the hyena poses a great threat to it.

If we compare 304 stainless steel to a lion and likened the new product of 304D as a hyena, 304D stainless steel is an emerging threat for 304 stainless steel in decorative sheet market. Therefore, the intense discussion held by decorative sheet sellers may be a kind of counterattack.

In any event, we should be gratified that there are always people who are contributing to establish and maintain a good market order.

In conclusion, the promise written down is to avoid the dispute of any quality problem. After all, customers have the right to choose and know. And it is a test of integrity that whether suppliers will fulfill their notification duty or not.

India Slaps Anti-dumping Duty On Some Stainless Steel Imports

India Slaps Anti-dumping Duty On Some Stainless Steel Imports

India imposed anti-dumping duty on some cold-rolled flat products of stainless steel from China, the US, South Korea and the European Union, to curb the influx of cheaper imports and help local producers.

The duty, which will be in effect until 10 December 2020, exempts certain grades of stainless steel, an official notification said.

The government has allowed import of the product as long as the end use of the import is in the same form, it said.

Earlier this month, the government imposed an anti-dumping duty on the import of some flat steel products from China and the European Union for five years.

Last month, the government imposed an additional 18.95% countervailing duty on some hot-rolled and cold-rolled stainless steel flat products, a first such levy on a steel product.