1. General rules of SMM Price Methodology

Shanghai Color Network (hereinafter referred to as SMM) is a completely independent third-party service organization, does not participate in any substantive transactions, but as a market observer or organizer to maintain close communication with the buyer or seller of the transaction, and provide relevant services to the market. SMM continuously develops, reviews and modifies its methodology by communicating with people in the industry to adopt the most common product specifications, terms of trade and terms of trade in the industry. And pay equal attention to normal transactions that meet the specifications and standards. SMM reserves the right to exclude any price information deemed to be unreliable or unrepresentative from its quotation judgment.

SMM publishes spot metal prices (or price indices, including the Chinese market, non-Chinese markets and global markets) on a daily basis, commonly referred to as SMM prices. SMM has formulated the corresponding methodology for the published SMM price (all of which will be published on SMM's official website www.smm.cn for inquiry). The methodology specifies the methods and procedures for generating and publishing SMM prices, and produces and publishes SMM prices in strict accordance with the provisions of the methodology.

In order to conform to the actual situation of the spot market, SMM will make the necessary amendments to the SMM price methodology and announce it on the official SMM website www.smm.cn before it is officially implemented. If you have any questions or suggestions about SMM price and its methodology, please contact SMM customer service personnel (please contact www.smm.cn on the official SMM website).

This document sets out the criteria for the quotation of SMM stainless steel, which was developed by SMM in order to establish a transparent and verifiable SMM pricing mechanism.

two。 The significance of SMM stainless Steel quotation

Stainless steel refers to the corrosion resistance of air, steam, water and other weak corrosion media and acid, alkali, salt and other chemical corrosion medium corrosion of steel, also known as stainless acid-resistant steel. Because stainless steel has a series of characteristics, such as excellent corrosion resistance, formability, compatibility and strength and toughness in a wide temperature range, it has been widely used in heavy industry, light industry, daily necessities industry, building decoration and other industries. Stainless steel has also become the main consumer of nickel, chromium, manganese and other important metal varieties, and its market is also closely related to nickel and chromium products.

In view of this, in order to serve the enterprises related to the stainless steel industry chain, provide them with prices that truly reflect the spot market, and constantly improve and deepen the research on the nickel and stainless steel industry chain, SMM will officially issue a daily quotation for stainless steel from July 1, 2019. The daily quotation of SMM stainless steel is an indicative price generated and issued by SMM according to this methodology and can be adopted by both parties as a reference basis for spot trade settlement of stainless steel. At that time, SMM price members can query the historical price synchronously.

3. Quotation Methodology of SMM stainless Steel Price

3.1 Product specifications and standards

SMM makes range quotations for the following types of stainless steel with reference to the GB/T 4237 and GB/T 3280 industry standards:

The industry standard of GB/T 4237 / 2015 stainless steel hot rolled steel plate and strip was put forward by China Iron and Steel Industry Association and put forward by the National Steel Standardization Technical Committee (SAC/C183). Drafting units: Shanxi Taigang stainless Steel Co., Ltd., Baosteel stainless Steel Co., Ltd., Metallurgical Industry Information Standard Research Institute, Sichuan Southwest stainless Steel Co., Ltd., Shandong Taishan Iron and Steel Group Co., Ltd.

The GB/T 3280-2015 stainless steel cold rolled steel plate and strip industry standard was put forward by the China Iron and Steel Industry Association and the National Steel Standardization Technical Committee (SAC/C183). Drafting units: Shanxi Taigang stainless Steel Co., Ltd., Baosteel stainless Steel Co., Ltd., Metallurgical Industry Information Standard Research Institute, Sichuan Southwest stainless Steel Co., Ltd., Ningbo Baoxin stainless Steel Co., Ltd., Shandong Taishan Iron and Steel Group Co., Ltd.

3.2 quotation process and announcement time

The price of SMM stainless steel will be announced at 11:00 every day.

3.3. Quotation principle

An important source of SMM stainless steel quotation is the transaction price of the core market participants (including tax, warehouse).

The purchase price of SMM stainless steel comes from relatively fixed market participants, including stainless steel plants, first-class agents of stainless steel plants, traders at all levels, stainless steel processing enterprises and terminal consumer enterprises. The purchase price is based on the fixed market participants' real transaction data, and SMM synthesizes the real transaction situation, including the relationship between the two sides of the transaction, the specification and quality of the trading products, the brand and the payment terms, etc., in order to determine the price range.

3.3.1 stainless steel plant

A. It is listed in the list of enterprises that meet the requirements of the Iron and Steel Industry Code announced by the Ministry of Industry and Information Technology, and has not been revoked. It has a standardized sales or procurement model, smooth sales channels, relatively stable sales or procurement quantity, has a certain degree of influence and popularity, and operates in good faith and with good reputation in the market.

B. There is a special sales department, which can objectively and truthfully feedback the actual situation of stainless steel production and sales, including output, operating rate, product quality, sales price, sales quantity, sales destination, product inventory, etc., and can maintain good communication with SMM price analysts in this regard.

C. Have certain research and expectation on the current situation of stainless steel industry and stainless steel market transaction, and be able to maintain good communication with SMM price analysts in this regard.

3.3.2 Trading enterprises

A. Engaged in stainless steel trade for more than two years, the average annual purchase and sales volume of more than 30000 tons, there is a standardized purchase and sale model, smooth purchase and sale channels, relatively stable purchase and sale quantity, has a certain influence and popularity, legitimate and honest management, good market reputation.

B. Can objectively and truthfully feedback the actual situation of the purchase and sale of stainless steel, including product quality, purchase and sale price, purchase and sale quantity, purchase source and sales destination, product inventory, etc., and can maintain good communication with SMM price analysts in this regard.

C. Have certain research and expectation on the current situation of stainless steel industry and stainless steel market transaction, and be able to maintain good communication with SMM price analysts in this regard.

3.3.3 stainless steel terminal consumer enterprise

A. The purchase of stainless steel as raw materials for production and operation for more than two years, the average annual purchase and sales volume of more than 3000 tons, there is a standardized purchase and sale model, smooth purchase and sale channels, relatively stable purchase and sale quantity, has a certain influence and popularity, legitimate and honest management, good market reputation.

B. Can objectively and truthfully feedback the actual situation of the enterprise's own stainless steel purchase, including product quality, purchase price, purchase quantity and product inventory, etc., and can maintain good communication with SMM price analysts in this regard.

C. Have certain research and expectation on the current situation of stainless steel industry and stainless steel market transaction, and be able to maintain good communication with SMM price analysts in this regard.

3.4 quantity

SMM obtains the transaction price information of stainless steel by standard, which can be included in the standard stainless steel trading quantity of not less than 100t per unit. For each transaction whose trading volume is not in this area, we will refer to the feedback of market participants, deduct the premium or discount to make it meet the standard, and abandon the bid if the transaction is an accidental act that cannot be repeated under the same conditions.

Abandon this bid.

3.5 currency and units of valuation

The price of SMM stainless steel is in yuan per ton.

3.6 terms of payment

The terms of payment reflected in the quotation are cash transactions for the month of the transaction. If there is a significant deviation from this standard, we will consider whether to exclude individual samples in the light of the volume of trade. If there is any forward payment, we will convert it according to the current interest rate to make it meet this standard.

3.7 Standardization of data

Although SMM has a standardized definition of our price, there is diversity in trading in the market. The price of each transaction is affected by many factors, including the size of the order, the brand of the goods, the time of delivery, the terms of payment, etc. SMM will take into account quotations, bids and transaction information on the market and align them with our standards.

Welcome more related enterprises in the industrial chain to participate in and support SMM to better serve the related enterprises in the stainless steel industry chain.

For enquiries, please call:

Wang Tong, Research team of Ni-Cr stainless Steel with Color net in Shanghai

Contact information: 021 51666855, QQ 2880505677

Liu Yuqiao, Research team of Ni-Cr stainless Steel with Color net in Shanghai

Contact information: 021 51666804, QQ 2881050930