SS Futures Prices are less Likely to Soar in the Short Term

SHANGHAI, May 4 (SMM) - Stainless steel futures prices hovered around 15,100 yuan/mt last week, once growing to over 15,300 yuan/mt. The futures market witnessed frequent fund flows thought the week. In the second half of the week, some bears left the market. As a result, the risk aversion sentiment spread across the market. SMM presumes that the futures prices are less likely to balloon in the near term.

The spot transactions were slack during the week. The stainless steel demand has grown more slowly recently, weighing on the upstream companies. SMM believes that the spot prices may run steadily as the market players are cautious about the market outlook, and the status quo of spot supply and demand will not change significantly after the Labour Day holiday since the stainless steel stocks held by the mills may grow further in May. The stainless steel futures prices will mainly move between 14,800-15,300 yuan/mt this week, and the prices may rise to over 15,300 yuan/mt sometimes.