Will Outokumpu Oyi’s savior be continued China growth?
As a consumer of 60% of the world’s stainless steel, “China currently accounts for half of Outokumpu’s business in the Asia-Pacific region,” according to Austin Lu, president of the company’s Asia Pacific operations. “A growing urban population and an environmentally friendly society would mean more demand for sophisticated raw materials such as stainless steel, said Mr. Lu, estimating annual demand growth of 5%-6% from China until 2020.”
What About Stainless, Nickel Pricing?
Meanwhile, the week’s biggest mover on the weekly Stainless MMI® was the 3-month price of nickel, which saw a 8.0 percent decline on the LME to $13,680 per metric ton. This comes on the heels of a 2.4 percent increase the week before. Following a 2.4 percent increase in the week prior, the nickel spot price fell 7.6 percent on the LME last week to $13,650 per metric ton.
The Indian nickel cash price rose 2.8 percent after falling 2.4 percent during the previous week.
Chinese stainless steel prices were mixed for the week. We finished with no movement for Chinese ferro-chrome. Chinese ferro-moly prices held steady from the previous week as well.
The price of Chinese primary nickel fell 5.8 percent after rising 1.6 percent the week before. Prices for Chinese 304 stainless steel scrap remained constant. Chinese 316 stainless steel scrap traded sideways last week. The price of Chinese 304 stainless coil did not change since the previous week. Chinese 316 stainless coil remained unchanged for the week.
Korean 430 stainless steel coil prices held steady from the previous week. Following a steady week, prices for Korean 304 stainless coil closed flat.
The Stainless MMI® collects and weights 14 global stainless steel and raw material price points to provide a unique view into stainless steel price trends. For more information on the Stainless MMI®, how it’s calculated or how your company can use the index, please drop us a note at: info (at) agmetalminer (dot) com.