Spot stainless Steel Prices in Foshan Rose More than Expected

SHANGHAI, Jan 18 (SMM) - Although the downstream stocking is about to end, the spot stainless steel prices in Foshan rose more than expected last week. This was driven by the restocking by some downstream producers, limited cargoes available in the spot market caused by transportation problems, as well as soaring nickel prices.

#200 series: Overall, the spot prices of the #200 series stainless steel remained stable, except for certain specifications, whose prices moved up. In terms of raw materials, EMM prices rebounded to more than 40,000 yuan/mt and are expected to remain high. Ferrochrome prices also rose, driven by the closure of Tianjin port and expected output cuts during the Winter Olympics. The prices of the #201 stainless steel are expected to stabilise this week.

#300 series: The spot prices of the #300 series stainless steel rose more than expected. As of last Friday, the spot prices of cold-rolled products remained flat at 17,500 yuan/mt, while those of hot-rolled products jumped to 18,000-18,200 yuan/mt. The arrivals of shipments from Delong and Yongjin fell short of expectations. Downstream producers did not stock up enough raw materials for use after the Chinese New Year (CNY). Despite thin trades, the prices of #304 stainless steel gained nearly 1,000 yuan/mt along with rising futures prices. The prices of #304 stainless steel are expected to stabilise this week.

#400 series: The prices of the #400 series stainless steel were relatively firm amid normal shipments and modest sales. Ferrochrome prices rose due to rising coal prices, the closure of Tianjin port and expected production restrictions during the Winter Olympics, providing cost support to the #400 series. As the downstream stocking is about to end, some sellers may lower their offers, which will weigh on the prices of the #400 series this week.