Indonesia Tsingshan ups stainless export quotes

PT Indonesia Tsingshan Stainless Steel (ITSS), the Indonesian production base of China's Tsingshan Holding Group, raised its export price quotes for 304-grade stainless cold-rolled products by $30/tonne last Friday as market concerns over tighter nickel supply intensified.

ITSS's price adjustment – its third this month – came amid expectations that PT Weda Bay Nickel (PT WBN), the joint venture between Eramet, Tsingshan Group and Antam based in North Maluku, Indonesia, would exhaust its initial RKAB (Nickel Work Plan and Budget) mining quota for this year by mid-May and then halt production at its nickel mine, as reported.

The development has fueled market concerns over tighter supply of nickel feedstocks, including nickel pig iron – a factor that could push stainless steel costs higher. In response, in China both nickel and stainless steel futures rallied last week.

As of April 24, the most-traded stainless steel contract for June delivery on the Shanghai Futures Exchange closed the daytime session at Yuan 15,185/t ($2,221/t), up Yuan 100/t from a week earlier.

Written by Tiffany Hou, houtianhui@mysteel.com

Edited by Russ McCulloch, russ.mcculloch@mysteel.com