SS contract first fell and then rose
Last week, the SS contract fluctuated. As of May 17, it closed at 14,370 yuan/mt (up 260 yuan/mt or 1.84% from the previous trading day, up 80 yuan/mt WoW from 14,290 yuan/mt). Stainless steel prices first fell and then rose. Last Monday to Wednesday, the SS contract continued to dip slightly amid faltering transactions. It slightly rebounded last Thursday and extended increases by Friday night. From a macro perspective, the real estate sector was influenced by policies and increased supply from developers. The US dollar index ran weak, remaining flat as of 15:18 on May 16. April core CPI in the US cooled for the first time in six months, strengthening market expectations on Fed rate cuts in September and December. After the CPI data was released, the US dollar index quickly fell, while the non-ferrous metals sector generally rose last Thursday. On May 17, the People's Bank of China and the National Administration of Financial Regulation jointly issued a document adjusting the minimum down payment ratio for individual commercial housing loans (no less than 15%) and the interest rates for commercial housing loans. Overseas, recent turmoil in New Caledonia may impact normal FeNi production. On May 18, SHFE nickel closed up by 5.21% due to multiple factors. However, fundamentally, the supply-demand imbalance in stainless steel has not improved, with a weekly inventory increase of 0.05%. Cold-rolled stainless steel stock digestion was overall smoother than hot-rolled one. The stainless steel supply is expected to remain ample and downstream demand may stay sluggish. In the short term, the SS contract is expected to run strong due to market sentiments, but upward momentum may be limited this week.
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