Spot Stainless Steel Prices to be Stable with some Downward Potential this Week

SHANGHAI, Mar 15 (SMM) - Spot #304 stainless steel prices generally fell last week. Many stainless steel mills intended to cut production slightly, which boosted market confidence. Recently, the warrant transactions have been growing as buyers purchased spots for warrant delivery at high prices to reduce their costs. A stainless steel mill in east China reduced the shipments to the Wuxi market last week, but the volume was still higher than the previous week. The agents were less willing to pick up cargoes, and many have not taken moves for several weeks. The short-term mismatch between supply and demand still existed, and the high inventory decreased slightly. Last week, the prices of high-grade NPI slumped. Some traders and NPI plants cut their prices amid the high NPI supply and the sluggish market. Nickel ore shipments from the Philippines will increase somewhat this week as the weather conditions in the country get better. Short-term NPI prices will probably fall amid the stainless steel mills' price cuts. The prices of high-carbon ferrochrome also dropped. Downstream companies bought ferrochrome cautiously, and the market witnessed scarce ferrochrome transactions. Chrome ore arrivals were low in March, driving up the ferrochrome plants' costs. It is expected that the downward space of ferrochrome prices will be limited. In summary, the stainless steel demand grew slowly. The supply surplus will remain unresolved in the short term. Besides, the cost support weakened. SMM believes that the prices of stainless steel will be stable with some downward potential this week.