SHANGHAI, Nov 9 (SMM) — The stainless steel market pessimism remained last week. The prices of most ferrous products like rebar and non-ferrous metals declined. The stainless steel futures and spot prices fell to varying degrees, with prices falling by nearly 1,000 yuan/mt. The prices of stainless steel have trended lower.

The steel mills that suspended production were restarting their operation, bringing more supply. On the demand side, the recent market demand was weak, and the transactions were poor. The poor shipments can hardly support the prices. In addition, the prices of raw materials like high-grade NPI have trended lower, lowering the costs. The recovering supply, weak demand, and the potentially lower costs have driven the prices of stainless steel to fall.

Stainless steel gradually enters the traditional off-season, and the demand is expected to weaken. The stainless steel prices can hardly gain support. Based on the current market prices and full costs, the profit of stainless steel mills integrated with NPI facility stands at around 700 yuan/mt. The prices of the SS2112 contract are expected to fluctuate between 17,500-19,000 yuan/mt.