News News

Stainless Steel Coil Suppliers Hope For Recovery in 2019

Date: 2018-12-24
Views: 3

Stainless steel prices – in particular, those for strip mill products – demonstrated diverse trends, in the traditional steelmaking regions, in 2018.

In the United States, the implementation of Section 232 quotas and tariffs, early in 2018, had an immediate inflationary effect on stainless steel coil selling figures. Basis values for grade 304 cold rolled coils declined during the latter part of the year - as did alloy surcharges. However, they remain slightly higher than they were at the beginning of 2018. Furthermore, North American transaction prices will finish the year above the values recorded in January, while those in Europe and Asia, generally, are down.

In Europe, as alloy surcharges soared, between February and July, transaction values failed to keep pace. Buyers were reluctant to pay the full extent of the increases. The majority of business, consequently, was carried out using “effective prices,” rather than the established “basis plus alloy surcharge” mechanism. During this period, nominal basis figures, i.e., transaction value minus alloy surcharge, dropped to unfamiliar and, almost certainly, unsustainable levels.

The widespread belief was that, when alloy surcharges receded, effective prices would decline less steeply, and that nominal basis values would, therefore climb back towards “normal” figures. In fact, during the second half of 2018, transaction values have fallen by more than the decrease in alloy extras. Nominal basis numbers are, now, several hundred euros below the widely accepted breakeven figure for cold rolled coil production. European producers will be hoping for a substantial recovery in stainless steel flat products prices, to return their operations towards profitability.

Asian prices have been much less volatile, this year, than those elsewhere in the world. Typically, fluctuations in their selling figures are driven by variations in raw material costs. Recently, producers attempted to maintain stability in their local markets by minimising price alterations. In Japan, especially, only moderate changes in market values, for 300-series cold rolled coils, were recorded, in 2018.

Related content
  • Hotspot
  • Newest
  • media
To develop the team cohesion and take a break from busy work, Beijing Kewei Jianye Steel Co.,Ltd management team organized the activity- Hiking In Tian Xuan Forest Park during 29th August and 30th Aug...
2020 - 09 - 10
Beijing Kewei Jianye Steel Co.,Ltd Organized week trip to Qinghai Province to Encourage the Staffs who have significant Contribution in 2019. On the Early June, the excellent annual Staffs and Company...
2020 - 06 - 16
Beijing Kewei Jianye Steel Co.,LTD(The Company) invited Company legal Adviser Mr Zhou to train the company staffs t...
2020 - 05 - 29
Due to the Corona Virus has been well controlled in Mainland China, thus to establish a better working environment, The Company organize a spring outing to the Tongzhou Grand Canal Forest...
2020 - 05 - 19
On the 9th of May 2020, Beijing Kewei Jianye Steel Co., Ltd hold a conference about Black Swan Theory. Sp...
2020 - 05 - 11
0086-10-59574230
(24 hours national service hotline)
Copyright ©2010 - 2018 BeijingKewei Jianye Steel CO., Ltd.
Rhinoceros cloud provides enterprise cloud services
犀牛云提供云计算服务
Follow Us:
X

Whatsapp(Tony)

+8618678022600

电话(Leo)

+8613370170607

1

QQ设置

  • Anita
3

SKYPE 设置

4

阿里旺旺设置

6

Leo

手机关注微信

展开