Group items tagged

Currently, the global stainless steel industry is going through difficult times, as prices of raw materials are increasing on one hand, and at the same time demand has been on a declining trend. Profitability of both manufacturers and traders of pipes and plate products have reduced significantly compared to the past two years. I have been speaking to many traders of pipes, plates and fittings about their business conditions and the most common answer I get is "Current business is even worse than what we experienced in the recession of 2008". It is not just the case with European or US manufacturers of stainless steel products, the effects of declining demand is being even faced by Chinese and Asian manufacturers. Nickel and ferro chrome prices are the driving factor for determining prices of stainless steel products. While, Nickel prices on the London Metal Exchange have been very volatile, ferro chrome prices have been recently increased by 12.5% by miners across economies. On account of an increase in ferro chrome prices, some manufacturers have already announced an increase in prices, while others are planning to increase the prices. Stockholders and buyers of products such as stainless steel sheets, plates, pipes, bars, fittings and flanges have been become highly risk averse and cautious while placing purchase orders with mills, especially in case of Asian stock holders who import these products from Chinese or Indian mills. The global speculation activity in metals has had a major impact on the buying patterns of consumers in Asian economies. Going forward, we expect the market to remain lack luster, with buyers staying on the back seat and purchasing in smaller quantities, to avoid major losses due to fluctuations in prices of Nickel and other raw materials. Although prices in the Indian market have remained stable, but selling big quantities of stainless steel plates, pipes and fittings has become difficult because of the risk averse attitude of traders

Concerns of a slowdown in the Chinese economy led to a selloff in major base metals including copper, aluminium and nickel. Even precious metals such as gold and silver were not spared. The key question is who to trust at times when gold is also on a freefall. This week global financial markets started with another round of selling, as investors turned risk averse following disappointing Chinese economic data. The Chinese Economy grew 7.7% during the first quarter of 2013, compared to the same period last year, missing economists' expectations of 8% growth. Growth also slowed compared to the last quarter of 2012, when it stood at 7.9%, raising expectations of a slowdown in the Chinese economy, which is a bearish signal for the global financial markets, especially base metals. Growth in Chinese industrial production also disappointed, with a reading of year on year growth of 8.9% in March compared to a 9.9% growth recorded in the previous month. Markets were expecting a growth of 10.0 year on year. Traders had expected China to post better results, as consumer spending had improved and Chinese government had also infused liquidity in the domestic financial system to aid growth. We expect the Chinese government to avoid a monetary tightening policy to aid growth in the coming months. Nickel prices were trading at around USD 15,500 / metric ton down around USD350 compared to the closing on Friday. The fall in nickel prices and weak Chinese economic data has come as a surprise to many stainless steel users and stockholders in emerging economies, as they had made material bookings for stainless steel seamless pipes, Stainless Steel Pipe Fittings and stainless steel strips in the last week,. They had anticipated Nickel prices of USD16000 / metric ton as bottom pric

The frenzy around the upcoming Facebook IPO and the nice run bulls have had on Wall Street in the early goings this year may be setting the table for a rally in Chinese internet stocks.

Hong Kong and Chinese stocks opened higher despite the sharp drop on Wall Street and ended a day of volatile trading with a slight gain. Export-oriented stocks dropped on EU worries.

Weakness in China's market depressed Hong Kong prices in early trading. A stronger-than-expected Chinese PMI reading gave the market a lift, but Chinese stocks fell lower at the close.

Chinese and Hong Kong stocks are testing a key resistance level as investors eye CPI data and continued progress in Greece's debt solution.

Chinese and Hong Kong stocks are testing a key resistance level as investors eye CPI data and continued progress in Greece's debt solution.

China and Hong Kong stocks rose for the second day in a row following big gains by Chinese stocks listed in the U.S. However, investors adopt a wait-and-see attitude on Europe.

Chinese stocks fell after European leaders failed to make progress on the debt crisis in Greece and the Fed did not give any indication it would launch a new round of loose credit.

This week's IMF report on risks facing Chinese banks underlines concerns facing China stock investors, but is unlikely to have much effect on stocks prices.

Weighed down by concerns about the slowing Chinese economy, Hong Kong struggled before posting slight gains when Mainland stocks rebounded from early losses.

Europe's struggles with its debt crisis continue to pre-occupy Chinese stocks investors, while expected credit loosening in China offers a ray of hope. However, one analyst cautions that there is uncertainty surrounding Chinese economic growth.

Hong Kong stocks drifted lower, weighed down by persistent concern about the European debt crisis. The big four China banks' lending in December hit a three-year high, but bank stocks were soft.

China's slumping economic growth has not yet been fully digested by the market. Chinese stocks continued to fall with no real bottom in sight yet.

Buoyed by a sharp rise on Wall Street, Chinese and Hong Kong stocks posted a solid gain in slightly higher turnover.

With a lack of fresh incentives, Chinese and Hong Kong stocks ended the day little changed in weakening turnover.

The Hong Kong market surged after major central banks acted to help European banks struggling with the region's debt crisis. A drop in Chinese banks required reserves boosted stocks.

Reports Europe would double its bailout fund and a positive outlook for the upcoming European summit meeting boosted Hong Kong and Chinese stocks.

Strength in U.S. and Chinese markets helped Hong Kong post solid increases in active trading as investors prepare for the upcoming holiday weekend.

Chinese stocks and Hong Kong blue chips once fell 180 points but ended with a small gain in weak turnover.

Hong Kong opened higher, but gains were capped at 21,000 by worries over a weak Chinese economy and stocks retreated to end slightly lower.

Hong Kong lost ground in tepid turnover amid short selling after Chinese stocks listed in the U.S. fell overnight.