Profits of Stainless Steel Mills Decreased Last Week amid Firm Costs and Lower Stainless Steel Prices

SHANGHAI, May 22 (SMM) - The overall stainless steel prices declined on poor demand regardless of the decrease in spot arrivals, hence the mills’ real-time profits gradually approached the break-even point. The stainless steel mills carried sufficient raw material stocks, further driving down the raw material prices. The cost of the RKEF process stood at around 15,641 yuan/mt, and that of the non-RKEF process was about 15,800 yuan/mt. SHFE nickel prices generally fell during the week because of the bearish macro factors and the expectations for massive clearance of imported pure nickel. NPI prices also declined on expanding market supply and low demand from stainless steel mills. Stainless steel scrap also prices dropped somewhat because of the growing market supply. Ferrochrome prices ran stably. In general, costs of stainless steel decreased last week, but the spot stainless steel prices fell faster. SMM predicts that the profits of stainless steel mills will shrink further this week.