Chinese steel and stainless steel prices have increased

Chinese steel and stainless steel prices are currently rising significantly again. Spot prices in China have risen between 3% and 4%?this week. Base metals continue to rise due to strong demand, tight inventories, and?so on.

Ultimately, whether it's a good time to buy stainless steel products depends on your needs, budget, and preferences. If you're interested in buying such products, you may want to consider researching the prices, brands, and quality of the products to find the best options for you.?We’re here to provide this service for you and help you get the best for your projects.

Chinese steel and stainless steel prices rise sharply

Chinese steel mills have raised prices for CRC and HDG by up to 3% in some cases. Higher raw material costs and bullish demand have contributed to the price hikes.

Stainless steel: Spot prices in China up by up to 4%

Spot prices for Chinese stainless steel have risen in recent days and shot up by up to 4% on Friday. Again, a significant increase in demand and very tight stocks of raw materials, such as nickel, are being cited as reasons.

Base Metals continue to rise

Nickel and aluminum continued their strong rise. Nickel opened just short of $28,800 per tonne at the start of trading. Aluminium also opened just below $3,900 per tonne, moving closer and closer to our forecast of $4,000. But copper (+2.1%) and zinc (+2.84%) also continue to make significant gains.

Nickel up 3.5%

On the SHFE, nickel had also already risen by more than 3.5% in some cases today. The market could soon go even higher for aluminum if more and more cables are made of aluminum to replace copper, which is currently very expensive. The demand for aluminum from the Chinese renewable energy sector has probably already increased significantly.

Nickel: The price hit rock bottom?recently

A year ago, the price of nickel on the London Metal Exchange rose by over 270% in just three days, triggering additional margin calls of nearly $16 billion for exchange members as nickel producers and traders covered their short positions. The rapid price fluctuations squeezed dozens of short sellers, including China's largest stainless steel producer, Qingdao-based Tsingshan Holding Group.

As of early March 8, 2022, the price of nickel had surpassed $14,890/MT. Fast forward to February and March of 2023, the monthly metal index for stainless steel fell by 4.68%. At the same time, the price of nickel also fell sharply.?From February 1 to March 21, LME nickel fell from US$30,350 to US$22,700.

Recently, stainless steel prices have been weak, and steel production costs have been in a state of continuous inversion. As a result, there has been pressure to lower raw material procurement prices. However, with the continuous decline in nickel-iron prices, steel mills' profits have slightly recovered.

The rainy season in the Philippines is coming to an end, and nickel ore prices have fallen significantly. The cost support for domestic nickel-iron prices has shifted significantly downward. However, most domestic iron mills are still below the break-even line, and they have reduced production and raised prices to cope with losses. Overall, in the short term, nickel-iron prices are expected to?increase.

Macro: Demand still remain sluggish

Stainless steel export:?Drop

In January, China's domestic stainless steel export volume was 364,900 tons, a decrease of 25,600 tons?(6.57%)?compared to the previous month, and a decrease of 35,800 tons,?8.93% compared to the same period last year.

In February, the domestic stainless steel export volume was 252,900 tons, a decrease of 112,000 tons?(30.69%)?compared to the previous month, and a decrease of 28,800 tons?(10.22%)?compared to the same period last year.?The cumulative export volume for January and February was 617,800 tons, a decrease of 9.46% compared to the same period last year.

Stainless steel import:?Drop

In January, the domestic stainless steel import volume was 150,400 tons, a decrease of 86,400 tons?(36.5%)?compared to the previous month, and a decrease of 233,200 tons?(60.8%)?compared to the same period last year.

In February, the domestic stainless steel import volume was 187,300 tons, an increase of 36,900 tons?(24.51%)?compared to the previous month, and a decrease of 134,100 tons?(41.72%)?compared to the same period last year.

The cumulative import volume for January and February was 337,600 tons, a decrease of 52.1% compared to the same period last year.

Stainless steel net export:?Rise

In January, the net export of stainless steel was 214,500 tons, an increase of 60,800 tons?(39.56%)?compared to the previous month, and an increase of 197,400 tons or 11.56 times compared to the same period last year.

In February, the net export of stainless steel was 65,700 tons, a decrease of 148,900 tons?(69.39%)?compared to the previous month. The cumulative net export volume for January and February was 280,200 tons, an?increase of?20% compared to the same period last year.

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