SS Contract Bottomed out Last Week

SHANGHAI, Aug 15 (SMM) - Early last week, stainless steel spot prices fell again, and SS contract slumped. The futures prices fell to the bottom again because of the power rationing in some regions of east China. In the second half of the week, boosted by the macro factors, SS contract rebounded slightly. With the further fall of spot prices, the spread between futures and spots narrowed. The short-term stainless steel supply may increase due to the continuous inflow of Indonesian stainless steel. The operating rates of stainless steel mills in some regions of east China declined because of the power rationing, and the delivery time was delayed. Last week, the cost support continued to weaken. Prices of high-carbon ferrochrome maintained a downward trend amid the weak demand from steel mills, and the short-term prices may continue to fall. NPI prices declined in stages owing to the oversupply, and the NPI plants no longer held the prices firm, so the prices may fluctuate with some potential drops. Stainless steel scrap prices were stable with occasional drops, and the cost efficiency rose somewhat. On the whole, the demand remained slack. The short-term supply may rise, further weakening the cost support. SMM presumes that the SS contract will remain rangebound or fall slightly this week.