Stainless Steel Market's Main Concern is Not Anti-Dumping, But This Matter

Author John Doe
Date Nov 25
Categories no_categories

🔍 Stainless Steel Market's Main Concern

July 22nd, Foshan Market News: Today marks the beginning of the hottest season of the year, Da Shu, which is also known as the Great Heat. Perhaps due to the need for restocking on Monday, the stainless steel market also showed signs of "warming up" compared to last week. The market was restless throughout the day. In the morning, attention was drawn to the "Ministry of Commerce's continued imposition of anti-dumping duties on imported stainless steel billets from Indonesia and other countries"; in the afternoon, the hot topic was the significant drop in stainless steel futures warehouse receipts:

📉 Significant Decrease in Stainless Steel Futures Warehouse Receipts

According to data from the Shanghai Futures Exchange, today's stainless steel futures warehouse receipts recorded 147,747 tons, a decrease of 39,847 tons from the previous trading day, a drop of 21.24%. This is the first significant inventory reduction on a trading day within the year, which has attracted considerable attention from the industry:

Voice 1: Level the market, deliver the warehouse receipts to agents, QS is the largest arbitrage company combining futures and spot trading.
Voice 2: The nearly 40,000 tons of warehouse receipts reduced corresponds to last week's GJ futures September short position of about 7,000 contracts closed (holding 9,000 contracts). This position belongs to QS, indicating it is a steel mill action.
Voice 3: The purpose of the significant reduction in positions by ZGGJ that day was to convert warehouse receipts into spot goods. All of Yongwang's warehouse receipts were converted into spot sales, totaling about 48,000 in East China and South China combined.
Voice 4: Today, while commodity futures are falling, why is stainless steel rising instead? It is due to the reduction of short positions, indicating that steel mills do not want to deliver in September and are selling spot goods to agents.
Voice 5: It is said that steel mills have instructed agents not to sell to futures and spot institutions, but the steel mills themselves are issuing warehouse receipts. After a rebate of 13550, it's about 13450 at the base.

Micro-comment: In the evening of Foshan, the sunset is particularly beautiful, spreading across the stainless steel circle of friends.

🌆 "Whether it's beautiful or not depends on the mood. You say such a market, the steel mill is in a good mood, so controllable. Like us, people who survive in the cracks, I feel that it is blood, the blood that the stainless steel people have shed with scars, and I don't have the mood to appreciate the beauty," said Old Iron.

Well, whoever is weak has reason, and whoever is hurt has the final say.

AmeriCan Energy (CHINA) Co., Ltd. stands as a prominent manufacturer and distributor of a comprehensive range of stainless steel products, designed to cater to the diverse needs of various industries. Their offerings encompass stainless steel tubes, plates, strips, and square tubes, all manufactured to uphold the highest quality benchmarks.

Contact Information:

Website: https://www.metal-ae.com/www.metal-ae.com
Email: ae@americenergy.com
Phone: 13521210668
whatsapp: 13521210668
Address: No.298 Fengwei Road, Xishan Development Zone, Wuxi City, Jiangsu Province, China

UNTR Nickel Sales to Reach 1.6 Million Tons This Year, Demand Expected to Grow Continuously Until 2027

Author John Doe
Date Nov 25
Categories no_categories

Nickel Sales and Demand Growth Projections

Recent Highlights

After a tiring week, the stainless steel market finally has a chance to catch its breath.
With today's developments, is the stainless steel market experiencing a 'turn of fortune'?

According to reports from the Indonesian Business Journal, United Tractors (UNTR) has set a target for nickel ore sales to reach between 1.5 million and 1.6 million tons.

Recently, UNTR's company secretary, Sara K. Loebis, stated that this target was set following the company's forecast that nickel demand will continue to grow until 2027.

At the same time, Sara also provided updates on the continued acquisition of Anugerah Surya Pacific Resources' Stargate nickel mine located in Konawe Utara, South Sulawesi.

It should be noted that the Stargate nickel mine has a production capacity of approximately 2 million to 2.5 million tons of nickel ore. "Currently, we are preparing the land for the construction of the smelter and supporting infrastructure," she said.

She added that the completion target of the Stargate smelter is still under review and is expected to be completed in 2025 or 2026.

Regarding the future outlook for nickel, despite the oversupply in Indonesia and the Philippines, as well as the shadow cast by falling nickel prices, Sara remains optimistic. She believes that compared to the period during the pandemic, the price drop is not significant.

"Currently, nickel prices have fallen compared to last year, but they are still higher than before the pandemic. Therefore, the management of UNTR believes that with continuous efforts to improve production efficiency and sustainable mining efficiency, the nickel mining business can be well operated and managed."

According to Kontan records, in the first quarter of 2024, UNTR recorded the sale of 382,543 tons of nickel products containing water (wmt) from the Stargate mine.

Details show that by January 2024, UNTR produced only 25,000 wet tons of saprolite, and by February 2024, UNTR's nickel production increased to 138,000 tons, with saprolite production at 60,000 tons and limonite production at 79,000 tons.

Continuing into March 2024, UNTR's nickel production will grow again to 220,000 tons, with saprolite and limonite production at 119,000 tons and 101,000 tons, respectively.

Content from the Indonesian Business Journal, does not represent the views of 51BXG.

51BXG does not guarantee the accuracy of the software translation, for reference only, the copyright belongs to the original author.

Americ Energy (CHINA) Co., Ltd.

Americ Energy (CHINA) Co., Ltd. stands as a prominent manufacturer and distributor of a comprehensive range of stainless steel products, designed to cater to the diverse needs of various industries. Their offerings encompass stainless steel tubes, plates, strips, and square tubes, all manufactured to uphold the highest quality benchmarks.

Contact Information:

Website: https://www.metal-ae.com/www.metal-ae.com
Email: ae@americenergy.com
Phone: 13521210668
whatsapp: 13521210668
Address: No.298 Fengwei Road, Xishan Development Zone, Wuxi City, Jiangsu Province, China

Stainless Steel Finally Has a Chance to Catch Its Breath After a Tiring Week

Author John Doe
Date Nov 25
Categories no_categories

📰 Stainless Steel Weekly Insights

Stainless Steel Finally Has a Chance to Catch Its Breath After a Tiring Week

The stainless steel market experienced a weak fluctuation this week, with futures prices continuing to operate weakly and breaking through the previous low. As a result, spot prices have been adjusted accordingly. Traders' efforts to promote sales through discounts have not been very effective, and the social inventory has risen again. There is an expectation of production reduction in steel mills in July, which may alleviate the pressure of future arrivals. The subsequent focus will be on the production and arrival rhythm of steel mills, as well as the stimulus intensity of domestic macroeconomic policies. It is expected that the stainless steel market will continue to fluctuate.

The futures prices of stainless steel have been weakly fluctuating this week, with the stainless steel market continuing to decline and breaking through the previous low. The transaction volume has shrunk during the week, but the last three days of the week saw a significant increase in position holding along with the decline, indicating an increase in market divergence and a strong sentiment of low-level game playing. The center of gravity of prices continues to move down, waiting for a breakthrough in trading volume to choose a direction. The main contract of the stainless steel market closed at 13815 this week, with a weekly decline of 0.65%, and the lowest price of the week was 13670.

Spot Market

In the spot market, the spot price of stainless steel was slightly adjusted this week. As the futures prices continued to operate weakly, the sentiment in the spot market was also relatively low. Steel mills have reduced their list prices, and the order performance was not satisfactory, suppressing the enthusiasm for transactions. The downstream consumption demand side is still mainly cautious and purchases on demand, with a low willingness to replenish stocks.

The price of raw materials is relatively stable, providing some support for the price of stainless steel. The production cost of steel mills is still in a state of reversal, and the steel mills have been receiving normal shipments during the week. The social inventory has started to increase again, and the pressure of market inventory has risen. There are still some traders offering discounts to sell goods, but the effect on promoting transactions is minimal.

The current market is still in a situation of oversupply. The expectation of production reduction in steel mills in July may alleviate the supply pressure, and the market needs to pay close attention to the production plan of steel mills, the rhythm of market arrivals, and the speed of social inventory reduction.

Weekly Average Price Comparison

Futures Warehouse Receipts

This week, the inventory of stainless steel registered warehouse receipts at the Shanghai Futures Exchange decreased by 10,170 to 187,594 tons compared to last week. This week, the warehouse receipt volume has finally been reduced, but it is still at a high level, and the speed of reduction needs to be maintained. The warehouse receipt resources bring a lot of pressure to the market inventory, and the market's ability to digest is limited, and the speed of inventory reduction is slow.

In Summary

In summary, this week, the price of stainless steel has been weakly operating, the price of raw materials is relatively stable, and the production profit of steel mills is still in a state of reversal.

There is an expectation of production reduction in steel mills in July, the overall transaction atmosphere in the market is cold, the performance of the downstream consumption demand side is still weak, the effect of traders' discount promotion is not good, and the social inventory has risen again.

The market needs to pay attention to the speed of social inventory reduction and the subsequent production and arrival rhythm of steel mills. It is expected that the stainless steel market will continue to fluctuate.

Stainless Steel, Is It "Searching for Light in Hell"?

Author John Doe
Date Nov 25
Categories no_categories

Stainless Steel's Struggle Amidst Changing Market Dynamics

Recently, the stainless steel market has been abuzz with discussions and speculations. Let's dive into the latest hot topics:

Qingshan's pan prices have dropped by 100! Agents continue to offer discounts. The competition is getting fierce!
As soon as the collection of scrap materials was halted, people started to speculate if this was a strategic retreat.

On July 18, 2024, in the Foshan market, a trending topic emerged: A vegetable market in Yantian, Shenzhen, offered free cooking services, causing panic among a group of restaurants!

🏃‍♂️ The competition is fierce! The rapid development of technology, like AI, is causing job displacement, and now even the food and beverage industry seems to be innovating. Milk tea has made its debut, aiming to be the "Light of Hell"; as for us in the stainless steel industry, we are now 'Searching for Light in Hell'...

After a long absence, the author's favorite jester commented on the situation today.

In July, the market lacked excitement, so stainless steel bosses have all started to travel, hoping to bring back a good mood and a good market trend. However, there is a group that is not worried about the market trend but is anxious about something else.

This group refers to the export sector.

📉 There has been a lot of talk about the tax rebate for zero-tax products, with the dividing line being the 20th. During the grace period, the tax rebate is about 2.2%. However, there is a rumor that after July 20th, the normal tax rate will be around 24%, but it is not clear whether this is true. The difference is quite significant. The tax rebate is to be implemented by the actual owner of the goods or the manufacturer, with customs brokers, shipping ports, and freight forwarders assisting in the completion.

Feedback from export merchants:

What I heard is that the 'two highs and one low' will be reviewed and supplemented, not just for stainless steel. It is said that according to the (value-added tax, income tax, and local tax) comprehensive preferential tax rate, a tax of 2.12% will be paid. Those who do not cooperate will bear the subsequent legal responsibilities.

Previously, foreign trade merchants reported:

Every order counts, and all must be supplemented. If there is a special reason for not being able to contact or refuse to supplement, the tax bureau will investigate from the business unit, customs broker, shipping port, freight forwarder, and owner, and if there is a clue interruption, it will be handed over to the economic investigation for handling until the supplement is completed.

Foreign trade merchants said:

It's hard to take orders, the industry is chaotic, so sometimes we hope it can be more standardized, at least the competition will not be so fierce. I feel that the people in our industry are very brave, they will be restrained on the tuyere, and after a while, they will still return to the original state. As for the tax supplement, I don't know if it's the whole industry to do it, or it depends on luck. The bullet has been flying for a while, and everyone should have a bottom in their hearts, just to see when this sword falls...

Regarding the rumors, export merchants said.

Overall, the group that has experienced its high moments is also slowly fading a bit.

BBA said it would collectively withdraw from the price war because the price war has hurt the foundation, and if it can't afford to lose, it won't play. The "shuffle tide" in the stainless steel industry is that those who can't hold on will run first.

In the current environment, which is not prosperous, with operating costs continuing to increase and profits becoming more difficult, people in the stainless steel industry have chosen to "hold on a little longer". As a result, everyone has become like a donkey in the Arabian region: the carrot hanging on the forehead is always there but always can't be eaten, but it gives it the motivation to move forward and the courage to persist.

Americ Energy (CHINA) Co., Ltd. stands as a prominent manufacturer and distributor of a comprehensive range of stainless steel products, designed to cater to the diverse needs of various industries. Their offerings encompass stainless steel tubes, plates, strips, and square tubes, all manufactured to uphold the highest quality benchmarks.

Contact Information:

Website: https://www.metal-ae.com/www.metal-ae.com
Email: ae@americenergy.com
Phone: 13521210668
WhatsApp: 13521210668
Address: No.298 Fengwei Road, Xishan Development Zone, Wuxi City, Jiangsu Province, China

When will the stainless steel market turn around?

Author John Doe
Date Nov 25
Categories no_categories

When Can the Stainless Steel Market Turn Around?

Recently, the stainless steel futures market has experienced a decline, with no significant improvement in market demand, and social inventory remains difficult to digest. The current trend of stainless steel prices is weak. When will this situation turn around?

Futures Market Fluctuates Downward

Market performance is not satisfactory. Recently, the stainless steel futures market has fluctuated downward, and the market is filled with pessimistic sentiment. With the new round of steel mill price adjustments, many spot merchants have followed suit. Downstream companies are cautious and wait-and-see, and transactions are still based on the demand for purchase. The futures market may affect the current market sentiment, and the overall market performance is not good.

Raw Material Prices Support

Although macro factors are weakening, the supply of Indonesian nickel ore is still tight due to the approval process and the rainy season. The smelting cost of Indonesian ferronickel factories is high, and the price of ferronickel is well supported. Domestic trade prices may warm up, but it is still necessary to pay attention to policy changes in the Indonesian industry. At present, steel mills are temporarily unable to accept the purchase of high-priced raw materials and maintain a price-pressing mentality for the purchase of raw materials such as ferronickel.

Supply Contraction Not Significant

From the supply side, the production of stainless steel crude steel in July is 3.2467 million tons, a month-on-month decrease of 1.27%. The production of stainless steel in July may further decline, but the contraction of supply is not significant. In the latest inventory data (as of July 18), the total social inventory of stainless steel in the mainstream national market of 89 warehouses is 1.1087 million tons, a week-on-week increase of 1.94%. The total social inventory of stainless steel in the mainstream national market of 89 warehouses has increased this period, with various series having different degrees of inventory increase. Downstream replenishment operations are cautious, the market is mainly based on the demand for purchase, and the pressure of stainless steel de-stocking still exists.

International Economic Situation is Severe

On the macro level, international precious metal futures generally fell, and most of the basic metals in London closed down. In addition, the Federal Reserve released the Beige Book on the economic situation, which is expected to slow down economic growth in the next six months due to various factors such as elections, policies, and political conflicts. Affected by the international macroeconomic situation, the overall market sentiment is not good.

Summary

In summary, the stainless steel futures market fluctuates downward, downstream demand is still weak, the macroeconomic situation is not good, and the market is full of wait-and-see sentiment. In the short term, the price of stainless steel may operate weakly and steadily. When the current market situation will turn around needs to continue to pay attention to market dynamics, supply and demand conditions, and policy trends.

Contact Information:

- Website: https://www.metal-ae.com/www.metal-ae.com

- Email: ae@americenergy.com

- Phone: 13521210668

- whatsapp: 13521210668

- Address: No.298 Fengwei Road, Xishan Development Zone, Wuxi City, Jiangsu Province, China