1. Indonesia's Delong anticipates a net loss of approximately RMB 1.8 to 2.2 billion for the fiscal year 2023, affected by the stepwise decline in nickel iron market prices, significant supply increase, and continuous weak domestic demand. Notably, since March 2023, nickel iron prices have sharply declined, with a precipitous drop commencing in October.
2. Stainless steel orders in the Taiwan region have slightly increased, benefiting from the exemption of Taiwanese stainless steel mills from the EU's preliminary judgement on anti-circumvention investigations after the Lunar New Year. This thawed the EU market, which had been frozen for nine months. Despite some difficulties in exporting to the European market, there was a noticeable increase in orders for midstream and downstream steel mills, buoyed by the bright performance of LME nickel prices since the end of February.
3. Due to trade restrictions and supply tightness, stainless steel prices in Europe surged in the latter half of the first quarter of 2024. The European Commission's decision to restrict supplies from Asia, including Taiwan, Turkey, and Vietnam, further tightened the region's supply. Moreover, the previously rising energy prices have now fallen, supporting the production of stainless steel by European steel mills. Additionally, disruptions in Red Sea trade and increased shipping costs have driven up the prices of cold-rolled stainless steel coils in the European spot market. The slight increase in demand from the renewable energy and construction sectors led to large orders from buyers.
4. The ASEAN Development Industrial Co., Ltd. successfully applied for a patent titled "Method for Preparing Antibacterial Stainless Steel through Surface Alloying." This invention provides a method for producing antibacterial stainless steel with superior corrosion resistance and antibacterial capabilities by coating an auxiliary medium layer on stainless steel, applying an antibacterial metal layer, and then thermally treating the steel to diffuse the antibacterial metal into the stainless steel. This process simplifies production, reduces costs, and is broadly applicable.
5. Shanxi Taigang successfully applied for a patent titled "Method for Grain Size Control of Niobium-Containing Austenitic Stainless Steel Hot-Rolled Medium and Thick Plates." This method enhances the high-temperature endurance and strength of niobium-containing austenitic stainless steel, ensuring product quality by controlling the grain size.
6. U.S. stock indices rose across the board, with mixed futures performance. The Dow Jones increased by 0.83%, the S&P 500 by 0.56%, and the Nasdaq by 0.39%; U.S. crude oil rose by 0.44%, while LME copper fell by 1.43%, and LME nickel dropped by $620 to $17,380 per ton. Indonesia plans to build 7 nickel smelting plants to address the tight nickel ore supply, promising to expedite the approval process. Currently, pure nickel enterprises are operating at a high rate, with overall downstream demand being average, alloy demand good, and the plating industry stable. There are expectations of a rebound in the precursor market for ternary batteries, predicting a broad fluctuation in nickel prices in the short term. Overall, the current spot market faces high inventory and warrant pressures, with plans to add 7 new nickel smelters in Indonesia and accelerate the approval process for nickel ore quotas, leading to a rebound and subsequent fall in nickel prices.
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