Price Spread between Stainless Steel Spots and Futures Exceeds 2,000 yuan/mt as SS Contract Plunges

SHANGHAI, Oct 28 (SMM) – The falling prices of coal and other energy sources have dragged down the metals prices across the board. The SS 2112 contract fell to 18,375 yuan/mt this morning and stabilised to stand at 19,005 yuan/mt at noon.

The SS contract fell by more than 1,000 yuan/mt, while the spot prices dropped slightly. The prices of 304 cold-rolled products stood at 20,800-21,900 yuan/mt, with the average price down 15 yuan/mt, and the prices of hot-rolled products (deburred edge) stood at 22,300-22,400 yuan/mt, with the average price down 100 yuan/mt.

The market generally reported poor transactions and almost no inquiries this morning. Some merchants said that Delong sold some goods at 20,300-20,400 yuan/mt, and the transaction was brisk as the prices were low. However, the overall transaction weakened further amid the falling prices.

As of 10:30 am today, the SHFE SS 2112 contract stood at 18,760 yuan/mt, and the spot premiums in Wuxi were at 2,210-3,310 yuan/mt. (Spot price of deburred edge products = Spot price of burr edge products + 170 yuan/mt)