SHANGHAI, Jun 1 (SMM) — The high-level meeting in China continued to release information on stabilising commodity prices, which has exerted pressure on stainless steel prices; in addition, shipments of stainless steel in the market have gradually arrived, easing shortages of some specifications. This weighed on prices. Trades weakened, lowering spot stainless steel prices.
The low-end traded prices of #304 cold-rolled products stood at 15,700-15,800 yuan/mt. Commodities prices surged on Thursday evening with nickel leading price gains. SHFE July stainless steel contract prices surged, bolstering spot prices slightly. Spot prices are expected to fluctuate rangebound in the near term. Gradual replenishment of supply has eased cargo shortages, and the current spot prices stand at high levels.
Prices of 200-series and 400-series stainless steel remained stable.
Based on prices of raw material inventory, profits of #300 stainless steel mills with NPI facilities stood at high levels and averaged 1,100 yuan/mt last week. Spot prices of stainless steel remained high but raw material prices like high-carbon ferrochrome, high-grade NPI and stainless steel scrap have not risen significantly, keeping profits at high levels. Profits are expected to remain high in view of the spot market.
The average discount of high-grade NPI against stainless steel scrap stood at around 114 yuan/mtu last week, on par with a week earlier, keeping high-grade NPI cost efficient. Steel mills have not restocked in large volumes. Stockpiling will lead to sharp gains in high-grade NPI prices, narrowing the discount of high-grade NPI. This will increase stainless steel costs.