SS Contract Prices Keep Falling amid Macro Pressure

SHANGHAI, Feb 20 (SMM) - Last week, the SS contract prices fell for several days but rebounded slightly last Friday. The US Fed said that it is necessary to raise the interest rate further, intensifying the market's concerns. Besides, the number of US initial jobless claims last week was lower than market forecasts, weighing on commodity prices. In the spot market, according to SMM research, a stainless steel mill in east China announced in advance its weekly rebates and goods allocation plan for this week. The slower goods allocation and gradual consumption of spot inventory boosted market confidence. The drop in high-grade NPI prices attracted some inquiries, but the downstream companies were still cautious about buying. The processing plants became more active in restocking. NPI sellers once cut their quotes last week, and panic filled the market. Meanwhile, the low purchase prices offered by stainless steel mills cast a huge pressure on the NPI plants. The short-term NPI prices will probably fall. High-carbon ferrochrome prices dropped somewhat last week. Recently, chrome ore inventory at ports has remained low. Many ferrochrome plants in south China still suffered losses from their spot raw materials. SMM believes that the short-term ferrochrome prices will be firmly supported by the unresolved supply tightness of ferrochrome and chrome ore. In general, SS contract prices trended lower last week amid pressure from macro factors in the foreign market and the high inventory. The spot market will still see a supply surplus in the short term. SMM expects that the overall SS contract prices will grow somewhat this week.