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Industry dynamics

GOOD NEWS FOR STAINLESS STEEL PRICES
  • 2017-02-02

Stainless steel transaction values increased significantly in December 2016.  LME shows 304 stainless steel strip increased by 3.5 % month-on-month. The reason was predominantly high raw material cost like nickel. The price has got into an repid trend since September with the US presidential election.

The nickel market was positively affected by the Philippines government policy on closing several mines duet to  environmental grounds. At the same time Indonesia restricted nickel ore exports. Both of them made nickel deficit worse .Obviously stainless steel supply was tightening due to nickel in the medium term. Moreover both countries have confirmed they would continue with their restrictions for the foreseeable future.

Although LME stocks remain at a comparatively high level around347,000 tonnes, it still results in a supply deficit in a long term.As one leader of stainless steel industry Cong Shine (shanghai) metal material co.,ltd predicts  the consequent upward pressure on prices for whole stainless steel supply.

The LME nickel price soared with Donald Trump’s election victory in the United States. Many observers predicted that Mr. Trump’s election would engender economic chaos.In fact the market began to show it.

In addition to economic growth, US stainless steel supply are likely to be assisted by further protectionist measures under the new regime from Donald Trump.

With the latest trade restraints policy in US and the European Union currently , the target was exports from China on stainless steel products. But we believe China’s future strategy will have a major influence on the global supply/demand balance. Anyway , we still think it is good news for stainless steel supply especial for us Cong Shine (shanghai) metal material co.,ltd

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