Stainless steel prices fell overall last week, and costs collapsed simultaneously. However, due to the rebound of pure nickel near the delivery day, the losses of some steel mills expanded. Steel mills were unable to cope with the weak market and concentrated on cutting production, but prices were still in a downward channel. The RKEF process cost is about 15,770 yuan/ton, and the non-RKEF process cost is about 16,245 yuan/ton. On the pure nickel side, this week's bottom was reached and the monthly difference widened after the end of the week, and the price of pure nickel rose more. As for the ferronickel end, the early invisible stocks of ferronickel were gradually released, traders rushed to sell goods, and the price of ferronickel experienced another breakthrough. The price of scrap stainless steel has dropped significantly due to the dual pressure from ferronickel and steel mills. On the ferrochrome side, due to the recent conflict between cost and demand for stainless steel, many ferrochrome plants have entered a state of production reduction, and it is expected to be weak and stable in the future. To sum up, although the cost line of finished products is falling, it is not as fast as the decline of stainless steel, and profit margins are narrowing. Steel mills are expected to increase production in April. Although factory and social warehouses are continuously depleted, stainless steel prices are expected to continue to be weak this week as demand remains weak.

Written by SMM Nickel Research, if you have any questions about the nickel market, please don't hesitate to talk with me Fancyli@smm.cn