China stainless steel prices dip amid pre-Lunar New Year destocking

Chinese stainless steel prices declined over the past week because of producer plans to reduce their inventories ahead of the January 24-30 Lunar New Year holiday.

Sources told Fastmarkets that the slight decrease in nickel prices also contributed to the lower prices, with the three-month nickel contract on the London Metal Exchange ending 2019 at $14,075-14,100 per tonne on Tuesday December 31, down $250-255 per tonne from $14,330-14,350 per tonne on December 24.
Domestic
Fastmarkets’ weekly price assessment for stainless steel cold-rolled coil 2mm grade 304 domestic, ex-whs China, in the country’s major market of Wuxi, was 14,100-14,800 yuan ($2,025-2,125) per tonne including value-added tax on Thursday January 2, down 200-300 yuan per tonne from a week earlier.
Sellers cut prices because they planned to de-stock before Chinese New Year to ease their capacity pressure, sources said.

Steelmakers kept high production rates while demand gradually dropped and that also...

Published

Jessica Zong

Lee Ken Kiat

January 02, 2020

10:32 GMT

Shanghai, Singapore