SS Contract Prices will Move with some Downward Potential this Week

SHANGHAI, Apr 3 (SMM) - SS contract prices grew first and then declined last week. Last Monday, China cut the reserve requirement ratio officially to boost the country's economy. The futures prices have risen slightly since two weeks ago, and the spot stainless steel trading improved at the beginning of last week. NPI prices have trended lower since last Wednesday, with a weekly drop of more than 60 yuan/mtu, which dragged down the nickel ore prices. Meanwhile, stainless steel transactions also became sluggish, and the futures prices fell. SMM expects NPI prices to run with occasional drops. Ferrochrome retails were slack, resulting in a serious supply surplus. Chrome ore supply also remained tight, and the purchasing volume of high-priced chrome ore futures was low. Ferrochrome prices will fluctuate with some downward potential if the plants do not cut their production intensively even though the chrome ore prices are less likely to fall. Costs of stainless steel may drop further. SMM predicts that the stainless steel futures prices will move with some downward potential this week.