A drop in extra charges in EU and a weak price trend of nickel have become major stumbling blocks Domestic makers of stainless cold-rolled steel sheets are at a tug of war with Chinese consumers, making an attempt to go through with a price rebound in their May shipments. According to industry sources May 1, domestic stainless cold-rolled steel makers, who have been in the price talks with Chinese consumers since the end of last month for their outbound shipments in May, have not concluded their export contracts beyond mid-May due to a price gap the both parties have not yet narrowed. Those domestic steelmakers began the price negotiation with the aim to increase theirexport price by U.S.$50 per ton from the previous month for the May shipments. Since the export prices had failed to get out of a slump for the past two consecutive months of March and April, they attempted a price rebound this month, taking advantage of the regional inventory adjustments. However, a downtrend trend ofnickel prices is working as the largestobstacle. Local consumers such as western tableware makers and distributors have returned to a wait-and-see stance with the possibility of afall in stainless steel prices in mind, as nickel prices have continued to be steady at the level of U.S.$10,000 per ton or below over the past severalweeks. A cut in extra charges European steelmakers also has given an excuse for local consumers to hold out. An industry official in charge of exports said, ‘A possibility of the interest rate increase by the U.S. and the shock from the Chinese retrenchment policies are lowering the prospects for an increase in nickel prices and therefore, Chinese consumers' expectation for a drop in stainless steel sheets has become too strong. Local consumers in China are trying to delay their contractsas much as possible.‘ parkjy@snmnews.com