Posted on 08 Jul 2022
By July 7, Japanese dealers' prices of 300-series stainless cold-rolled (CR) sheets had increased by another Yen 30,000/tonne ($221/t) on week over the previous hikes by producers, and dealers were expected to further lift their prices aggressively, market sources in Tokyo shared.
As of Thursday morning, SUS304 2mm CR cut sheets were being transacted at Yen 630,000/t in the spot market in Tokyo, up Yen 30,000/t on week, and Yen 70,000/t on month, according to market sources.
A distributor in Tokyo shared that some buyers had already started agreeing on Yen 650,000/t for SUS304 2mm CR cut sheets, and most distributors are targeting to reach Yen 700,000/t by the end of this summer.
"Distributors are taking a strong stance on prices to catch up with the producers' hikes, so buyers will have to pay more to secure the volume they need," he said.
A Tokyo-based trader said that supply of stainless flats from producers to the spot market had been limited and stocks had been kept at adequate levels.
"Demand for stainless CR sheets remains stable, and some buyers are rushing to secure the materials before their prices rise further. So we expect market prices to rise steadily," he predicted.
In May, Japan's domestic sales of 300-series CR coils and sheets among 32 major coil centers rose 9.9% on year but 5.7% lower on month to 26,632 tonnes, and stocks for those totaled 59,888 tonnes by end-May, 4.5% higher on year but down 1.1% on month, according to the latest data from Japan Stainless Coil Center Association (JSCA).
Meanwhile, dealers' prices of SUS430 2mm cut sheet in Tokyo were at Yen 380,000/t as of Thursday morning, Yen 10,000/t higher on week and up Yen 20,000/t on month to Yen 380,000/t.
The Tokyo-based trader explained that the producers' hikes for 400-series CR flats were much smaller than those for 300-series, so the smaller increment was expected.
"And 400-series CR sheets are largely consumed by those auto manufacturers who had been slashing their production with the delay in component deliveries. And this also slowed down the rise in 400-series prices," he said.
Source:Mysteel Global
