Stainless steel prices remained stable, transactions improved, inventories under warrants fell sharply

SHANGHAI, Mar 30 (SMM) — At the beginning of last week, merchants made active purchases, and the spot market transactions of stainless steel were active. On March 22, prices of 304 cold and hot rolled stainless steel both rose.

After the downstream replenishment, the spot transaction weakened, but the prices stood stable amid short supply. According to SMM survey, the supply of 304 cold-rolled plates above 1.78 cm thick was tight in Wuxi, and prices were high.

Stainless steel inventories under warrants dropped sharply amid active transaction, boosting the spot market.

Quotations of 304 cold-rolled coil rose by 100 yuan/mt to 15,200-15,600 yuan/mt, quotations 304 hot-rolled coils rose by 200 yuan/mt to 15,300-15,500 yuan/mt. Quotations of 200 series products was raised by 100 yuan/mt due to the increased steel mills' guidance prices. The quotations of 201 cold-rolled J1 coils were between 8,600-8,800 yuan/mt. Quotations of 430 cold-rolled products stood stable between 10,400-10,600 yuan/mt.

SS basis has dropped slightly but remained above 1,000 yuan/mt

Based on the daily raw material prices, the full cost of the steel plants with NPI facilities remained at a loss of about 300 yuan/mt. The profit based on the cash cost was about 312 yuan/mt.

Stainless steel production remained in loss

The spot supply of stainless steel was tight in the market as the resources in transit had not arrived. Steel mills held spot prices high, and prices of stainless steel contracts went upward amid active transactions under warrants. The prices of stainless steel are expected to rise steadily this week.

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