The novel coronavirus (2019-nCoV) outbreak in South Korea, the largest export market for Chinese stainless steel, is likely to apply additional pressure on stainless steel prices in Asia, sources told Fastmarkets this week.
Although the actual impact will be determined by the severity of the measures that the South Korean government undertakes, buyers are likely to exercise more caution while they observe the situation, a trader in northern China said.
The number of coronavirus infections in South Korea shot up to some 1,600 within the span of about a week from about 30, according to statistics released by the republic's Centers for Disease Control & Prevention. This makes South Korea the country with the second-highest number of infections, behind China.
South Korea has also reported 12 deaths from Covid-19, the disease that the coronavirus causes.
China exported 195,035 tonnes of stainless flat steel under HS codes 721913 and 721933 to South Korea in 2019, which accounted for a fifth of its total exports of 941,534 tonnes for the year, according to Chinese customs data.
With Chinese stainless steel producers...