flying now.........breakout uptrend, page-19

Posted this on a stainless steel site and got the following reply from SS manufacturer-

QUESTION
Not being in the stainless steel business, Im curious to find out just what effect the high nickel prices is having on retail goods. Although todays prices havent yet been passed on to consumers (I assume) what does nickel at $50000US do to the price of a $200 kitchen sink- add 10%, 20%, 40%?

ANSWER
Well, first of all I guess, you need to consider, that it is a long way from smelter to shelf. Here are my assumptions:

1. The producer of stainless steel does not have a longterm agreement with mining companies on a fixed price level (LME movements could be considered) or has own mining capabilities (s. Outokumpu, Finland - by the way, why are they selling it now ?).
2. The alloy scrap used (usually above 85%) comes to lower price (maybe even also on a fixed price agreement) and level.
3. The producer of the household utilities does not have a fixed price agreement with its supplier.
4. The original margin for the reseller (trader or large department store) is large enough to compensate a 10 -20 % rise.

Conclusion: Only if nickel stays at 50000 $ /t. and above for a long time (6 months and more) there is a reason given that the salesprice of a kitchen sink might rise about 10 - 20%.
END

Its my belief that Chinese talk of substitution, gluts of ss supplies etc is exactly that - TALK.
Jinchuan in particular has been doing a lot of yapping hoping to bring the price down- they got caught short