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SunSirs: Small Adjustments in the Stability of the Stainless Steel Market This Week (July 20-24)
July 27 2020 15:11:01SunSirs(John)

Price trend

According to the price monitoring of SunSirs, as of the weekend, the average daily price of spot 304/2B stainless steel plate 1.0*1219*2438 (tolerance 0.91) was 12,475 RMB/ton, which was an increase of 0.2% from the 12,450 RMB/ton at the beginning of the week and a year-on-year decrease of 8.85%, down 6.67% from the beginning of the year.

Analysis review

Upstream nickel

According to the price monitoring of SunSirs, the price of nickel rose sharply this week. As of the end of the week, the spot price of nickel was 108,416.67 RMB/ton, a slight increase of 4.2% from the 104,050 RMB/ton at the beginning of the week, a decrease of 4.67% from the beginning of the year, and a year-on-year decrease of 3.66%. The main force of Shanghai nickel opened at 106,390 RMB/ton. After the opening, the price weakened, as low as 104,320 RMB/ton, and then strengthened, with a maximum of 110,190 RMB/ton, and closed at 107650 RMB/ton, an increase of 1.22%. LME's March nickel closed at 13,150 US dollars/ton, and the price fluctuated this week with an increase of 2.9%.Tesla CEO Elon Musk shouted to suppliers on the second quarter earnings conference call held on July 23: "If you mine nickel efficiently in an environmentally friendly way, Tesla will give you a long-term big contract." Affected by this news, the non-ferrous metals sector of the domestic futures market rose collectively in the night trading. Shanghai Nickel opened 1.6% higher and closed up 3%. As Musk's speech on the earnings conference call highlighted the risk that mines may be unable to increase production to meet the needs of electric car manufacturers, the LME period nickel once climbed 4.3%, boosting nickel prices.

According to the data monitoring of SunSirs, before, the spot nickel price and the stainless steel price were basically close to each other, and the difference was not much. Now the nickel price fluctuates greatly, and the stainless steel price is relatively stable. Nickel is greatly affected by the news, while stainless steel is mainly affected by supply and demand.

Naiman Jingan 1.3 million tons stainless steel project put into operation 6 production lines in September

Naiman, Tongliao City, Inner Mongolia, overcame the impact of the epidemic and went all out to promote the resumption of work and construction of key projects. During the year, 86 key projects are planned to be implemented (57 new ones, 29 new ones to be rebuilt), and an investment of more than 7 billion RMB is planned to be completed. According to the new nickel-based alloy material project, six production lines were put into operation in September.

The new projects to be started in the second half of the year are: stainless steel production line project with an annual output of 1,294,700 tons, 600,000 tons of silico-manganese alloy, 400,000 tons of high-carbon ferrochrome production line project, The new projects to be started in the second half of the year include: a lime production line project with an annual output of 204,000 tons, a casting project with an annual output of 25,000 tons, and a blue charcoal project with an annual output of 3 million tons. The total investment of the above projects is 9.727 billion RMB, and the investment in the continued and new projects that year was over 2 billion RMB. Construct dormitory buildings, solid waste storage yards, special railway lines, park roads and other infrastructure projects.

Shandong Taijia's 300,000-ton stainless steel Cold rolled sheet project is scheduled to be put into operation in October

According to sources, the 300,000-ton stainless steel cold rolling project of Shandong Taijia New Material Technology Co., Ltd., a subsidiary of Shandong Taigang Group, is scheduled to be put into operation in October.

Ningbo Baoxin's ex-factory price increase in August 2020

Ningbo Baoxin announced the August 2020 ex-factory price (both including tax): 304 cold-rolled 14,600 RMB/ton, up 100 RMB/ton from July 2020; 430 cold-rolled 9,800 RMB/ton, a month-on-month increase of 200 RMB/ton from July 2020.

Market outlook

In summary, the upstream nickel price is rising, but the downstream demand is weak, and it is difficult for stainless steel to follow up. It is expected that stainless steel will remain stable in the short term.

If you have any questions, please feel free to contact SunSirs with support@sunsirs.com.

 

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