Stainless steel futures contract hit a three-year low

Stainless steel futures contract hit a three-year low, dipping to 13,010 yuan/mt. As of December 7, the closing price decreased by 510 yuan/mt compared to November 30. On the macro front, internationally, Federal Reserve Chair Powell recently said that it would be premature to conclude with confidence that we have achieved a sufficiently restrictive stance, or to speculate on when policy might ease. The Fed will proceed cautiously, and the outlook for a Fed interest rate cut remains uncertain for now. As a result, short-term pressure is expected to persist on commodities.
High-grade NPI prices has slightly declined. As the year-end approaches, there is increased pressure on traders to recollect funds, leading to further drops and new lows in prices. It is anticipated that high-grade NPI will continue to exhibit a relatively weak performance in the short term. High-carbon ferrochrome prices remained stable with strong cost support.
SMM predicts that the stainless steel market will continue to fluctuate downward this week.