Transactions of nickel based stainless CR sheets for October 2008 shipments have come to a virtual standstill in East Asia where a wait and see position is predominating among stainless steel manufacturers and their customers.

In China, major stainless steel manufacturers such as Taiyuan Iron & Steel Group Co have yet to announce domestic sales prices of products for October 2008 shipments even after China's anniversary of its founding. Taiwan's stainless steel operators have reduced what they charge for export sales by TWD 4,000 per tonne. But their export negotiations look slow to go forward for firm deals. Japan's stainless steel producers have offered what they export at USD 3,300 to USD 3,400 per tonne FOB, which brought bids of USD 3,000 to USD 3,100 per tonne FOB. But the bids were retracted in no time.

LME nickel prices stood at a level of USD 8.90 per pound in mid September 2008. Then, they fell off to a level below USD 7 per pound last week for the first time in 2 and half years. At the present juncture, they are forecast to continue falling in enhanced uncertainties over the world's nickel markets.

China's current Wuxi stainless steel market is assessed at CNY 24,500 per tonne after tax for Ni based sheets of 2mm thick. By comparison, stainless steel majors quoted their products at CNY 28,600 per tonne after tax for September shipments. It is considered certain that they will reduce what they charge for October shipments to meet a spread of CNY 4,100 per tonne between the going market and the asking price. So far, though, they find it difficult to determine what price reduction they can execute.

There are inquiries from Europe and the USA for imports of Ni based stainless CR sheets from Japan. Japan's stainless steel producers saw chances to work out deals in September out of those inquiries from the West. But at present, both sides face a difficult timing for negotiations in a depreciating euro to the US dollar, which is akin to the current situation for Japanese stainless steel exports to South Korea. With a depreciating won to the US dollar, both the Japanese steelmakers and Korean customers have no option but to mark time so far.

Stainless steel demand itself doesn't necessarily stop. Some customers indicate intent to negotiate for purchases. But what they hope to take is half the normal level, while their bids stand at a fairly low level in anticipation of a more fall in stainless steel prices. Accordingly, the Japanese steelmakers find themselves discouraged from conducting negotiations on what they sell. – SteelPrices-India