12 August 2015

The supply of stainless steel continues to exceed demand

Russian importers were the victims of optimistic forecasts and estimates of sales in the domestic market. In the last days of April, the reasons for the increase in sales of stainless steel became clear . It turned out that the growth of real consumption here and does not smell. Sales volumes increased due to the replenishment of stock in warehouses by end users. According to one of the traders, it is impossible to draw up a schedule of purchases for the future. Consumers have no idea what quantity of products they may need in the future. March purchases included the item "in reserve". As a result, consumers increased inventories. The number of products produced with the use of stainless steel significantly decreased. The results of April and May confirmed the trend, but the importers did not have time to react. The product was ordered and even partially paid. The most enterprising traders ordered a quantity that could be guaranteed to be realized.

In April-May there was a strengthening of the ruble and activation of end-users. As a result, Russian importers in the stainless steel sector increased orders for imported products. Acquired products in June were safely delivered. However, by this time the market situation has changed. The rental offer continues to exceed real demand.

In order to maintain turnover, many companies have reduced the selling price to almost zero income. That, accordingly, affected the price situation as a whole. The average cost of cold rolled flat products AISI 304 2 V (08H18N9) fell by 0.7% to 212930 RUB / ton. The price of AISI 321 2 B (12X18N10T) fell by 0.9% to the level of 228020 RUB / ton. Rental AISI 430 2 V (08X17) fell in price by 2.2%, reaching the level of 113485 RUB / ton. The cost of long products fell from 0.1% to 0.7%, ranging from 100020 to 212780 RUB / ton. The cost of hot-rolled flat products has also decreased.

According to the data from the Spetsstal Association, the amount of Russian imports of staple products from stainless steel has increased significantly. In June 2015, volumes increased by 22.1% compared to May figures, amounting to 21.092 thousand tons. The volume of imported flat steel increased by 34.7%. The number of electric-welded pipes increased by 8.1%, wire by 41.1%, pipe fittings by 24.1%. True, imported long products fell 5.4%. The import of primary billet decreased by 95.1%, the import of seamless pipes fell by 25.9%.

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