Stainless Steel Spot Prices Dipped amid Mixed Production Expansion and Cuts

SHANGHAI, Mar 2 (SMM) – Today, the spot prices of all series of stainless steel products in Foshan stood flat today. The average price of the 300 series product was around 18,000 yuan/mt. The market received a large number of goods last week, while the demand failed to keep up. The downstream users continued to purchase on rigid demand after the prices rebounded slightly yesterday.

The market heard yesterday that the new stainless steel capacity in Xiangshui, Jiangsu may be put into operation in March. Many steel mills also plan to resume production in March. Therefore, the stainless steel prices are expected to remain in a downward trend.

The NPI prices stand high, but the current purchasing demand is not strong. If the stainless steel prices pull back, the NPI prices may be dragged down. At the same time, the stainless steel scrap prices keep falling, weakening the cost support of stainless steel.

The prices of 304/2B coils (deburred edge) from state-owned companies stood at 19,600-20,100 yuan/mt, and the prices of 304/2B (burr edge) from private companies stood at 18,300-18,700 yuan/mt. The quotations for 304/NO.1 coil (1.67m) were 18,400-18,800 yuan/mt, and the SHFE SS2204 contract price was 17,740 yuan/mt at 10:30 this morning. The spot premiums in Foshan stood at 595-995 yuan/mt.