The market of cold rolled austenitic stainless steel sheets in the East Asian region is showing a slow reaction despite of a price hike of material nickel. Accordingly, negotiations for June shipment is unfolding to lack in upsurge.

As the LME price of material nickel exceeded USD 8.00, the Japanese mills had assumed that a speculative demand would have increased anticipating a rise in prices. However, customers are still showing a wait and see stance.

Against the backdrop, customers are likely to continue a wait and see attitude because the price rise of the LME nickel has been caused by Indonesia's export ban of nickel ore, the instability of political situation over Russia and Ukraine and so on and the actual demand for austenitic stainless sheets is not entailed.

Meantime, offer prices are rising in the market. In Hong Kong, it is uncertain which mill is offering but offer prices at the level of USD 2,800 CFR to SUS304 are said to be found here and there. They seem to be rising by USD 150 to USD 200 from those in March. It is reported that Taiyuan Iron & Steel of China has increased its offer prices for Korea by USD 200 being close to USD 2,800 CFR for June shipment.

As the domestic demand for CR austenitic stainless sheets is brisk, the Japanese mills are not necessary to participate forcedly in the export market. Therefore, they have passed over the level of USD 2,800 CFR and are offering their prices at the level of USD 2,900 CFR, and thye are in a stance to receive selected orders shortening their offer validity to about one week.

The Chinese market of austenitic stainless sheets is seesawing. Therefore, TISCO seems to be unable to take a step to raise its prices despite of the nickel price rise. Meantime, it is reported that waterfront inventory of nickel ore in that country is decreasing. It is seen to be because as ore from Indonesia cannot be gotten and further, prices of nickel ore from the Philippines begin to be soaring, waterfront inventory has been consumed.

Such observation is appearing that the LME price will rise furthermore. If so, it is thought to have an impact on prices of nickel pig iron in China at some stage. If prices of nickel pig iron rise, China's prices of CR austenitic stainless sheets will be increased at some future time.