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Stainless Steel Prices Likely to Get Weaker Cost Support in November
Nov 16, 2022 14:45CST
Source:SMM
In November, the total output of stainless steel may increase slightly, and most steel mills will make production scheduling plans cautiously. On the demand side, most terminal companies have restocked some raw materials, so they will purchase on rigid demand in the month.

SHANGHAI, Nov 16 (SMM) - Prices of spot stainless steel rose slightly in October, with a monthly increase of about 200 yuan/mt. The total domestic stainless steel output increased by about 9.4% month-on-month, of which the output of the 200-series stainless steel added about 19.8% MoM. After the National Day holiday, spot prices rose slowly. In the second half of the month, steel mills raised their quotes frequently, and the market transaction was cheering, which rapidly pushed up the spot prices. However, the transmission of the demand to the terminal end was not smooth. In late October, spot prices fell slowly, and the traders’ inventory gradually grew. In general, the addition output of stainless steel in September was shipped to the market. Transactions improved MoM, but the growth of terminal demand was slower than that of supply. Some steel mills, traders and terminal companies got relatively huge inventory pressure.

In November, the total output of stainless steel may increase slightly, and most steel mills will make production scheduling plans cautiously. On the demand side, most terminal companies have restocked some raw materials, so they will purchase on rigid demand in the month. Stainless steel may get weaker cost support. Buyers and sellers of high-grade NPI will remain in the game, and the acceptable price range will narrow slightly. Under the support of nickel ore prices, high-grade NPI prices will fluctuate with some downward potential. Ferrochrome plants will be more willing to resume their production amid the falling smelting cost. Besides, with the gradual release of inventories for retail sales, the shortage of spot ferrochrome will ease. High-carbon ferrochrome prices are expected to remain stable. November is usually the off-season for stainless steel. SMM predicts that stainless steel prices will remain rangebound with occasional declines in November amid the weak supply and demand. The market shall pay attention to the price trend of nickel-based raw materials.

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