- Production adjustments in Indonesia prompt raw material price hikes
- Tight supply, expected stainless steel demand pick-up boost procurement
SteelDaily: Chinese prices of the key raw materials for stainless steel, nickel pig iron and ferro chrome, have increased simultaneously, influencing a rebound in stainless steel tags after a decline over the past eight trading days.
On 25 August, Qingshan raised its high-grade nickel pig iron bid prices by RMB 40/t to RMB 940/t, signalling bullish market sentiment. The September long-term contract price for high-carbon ferro chrome also rose RMB 300/t m-o-m to RMB 8,225/t, with spot trading in Inner Mongolia continuing upward between RMB 8,000-8,100/t.
This price rise was driven by production adjustments in Indonesia and competition among electric arc furnace steelmakers in China, combined with reduced supply in August and anticipated increased demand in the second half of the year.
These developments directly impacted stainless steel prices, with futures closing at RMB 12,880/t on 25 August, a 0.98% d-o-d increase. Spot prices reflected this trend, as 304 hot-rolled steel rose by RMB 150/t and cold-rolled steel by RMB 100/t.
Note: This article has been published in accordance with a content exchange agreement between SteelDaily and BigMint.
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