SS Contract Prices Trend Lower on Fed's Rate Hike

SHANGHAI, Mar 27 (SMM) - SS contract prices trended lower last week. As the US Fed announced a 25-basis-point rate hike last week, commodity prices fell. The People's Bank of China cut the reserve requirement ratio last Friday, which still failed to boost market confidence. In the spot market, some 200-series stainless steel mills announced joint price hikes, improving orders received by some mills. Some 300-series stainless steel mills cut production, but the demand grew on the week, reducing the social inventory. High-grade NPI prices dropped further. NPI manufacturers were less willing to buy nickel ore since they expected the mines to undercut their quotes, which may reduce the NPI supply. The NPI prices are expected to run steadily with some downward potential. The supply of ferrochrome was abundant, weighing on the ferrochrome plants. Ferrochrome prices may fall this week. Costs of stainless steel are expected to decline. SMM predicts that the stainless steel futures prices will be stable with some downward potential this week.