Our ferrite reactor production this year is expected to reach 2 million tons. In addition, the application of nickel pig iron to replace the part of the demand of nickel this year, China imported a large number of nickel ore from Southeast Asia and other places, the use of nickel pig iron plant reactor will reach 2 million tons, accounting for the amount of nickel reactor industry 35%. As can be seen from the above factors, due to the uncertainty of demand, for the present, the international nickel price decline is quite obvious.
Ruoshi rolled steel production difficult. A quarter of domestic and foreign reactor manufacturers have to deal with the weak market conditions cut. Japan reactor plant intends to cut 40 percent in the third quarter, Taiwan's Tang Eng July reactor plant plans to cut 20-30% in August to continue production. Domestic reactor plant is expected to cut rate in July is about 20%, but due to production cuts is not enough, the domestic market is not much influence. In addition, steel mills did not reach an agreement on production cuts, only to decide in each can withstand a loss of range. Moreover, the market is down channel, when the steel mills face losses, maintain market share and expand market share is an important issue to be considered mills. Thus, the second half of the domestic reactor plant production rate may be more limited, the market price support recovery efforts are weak.
Light and export markets faced trade barriers. After a sharp decline since the reactor prices peaked in May, reactor flat steel imports in Southeast Asia almost to a standstill. Nickel prices fell by international and domestic prices affect the reactor, reactor plant has repeatedly lowered the export quotation, Taiwan Ye Xing will be August reactor export prices by $ 600 / ton; TISCO also lowered the South Korea's reaction kettle export prices in October, a decline of $ 370 / t, since May, TISCO stainless 304 hot rolled coil export offer has accumulated down $ 1,370 / ton. However, prices fell so importer in a wait state, the Asian markets reactor export market is still very quiet.
In addition to the export prices fell, the Chinese reactor exports also face barriers to trade. ThyssenKrupp asked the European Commission to China to start anti-dumping investigations reactor, the reactor to contain the number of Chinese exports to the EU, which is the European market downturn reactor are not unrelated.
Now, with the increase in inventories, the nickel price is still down space, nickel demand will be reduced, which will continue to suppress reactor market price. However, considering the reactor consumer demand gradually recovered, and after adjustments for several months, the domestic market has entered a reactor Ruoshi finishing stage, pre-obvious downside unlikely situation, the low prices are expected to stabilize the reactor operation.
