Prices of Spot Stainless Steel Fluctuated with some Downward Potential amid the Rising Costs

SHANGHAI, Oct 12 (SMM) - On October 12, spot prices of stainless steel in Wuxi market dropped more than those in the Foshan market. According to SMM research, the demand for stainless steel has temporarily improved after the National Day holiday, and most of the transactions come from the terminal restocking. However, spot trading recently has become relatively slack. In addition, a small-scale pandemic outbreak broke out in the Dainan area, and the related rolling mills are currently in the normal production. Under the circumstance of strictly controlling the flow of personnel, logistics and transportation may be affected to a certain extent. The prices of high-grade NPI rose and will continue to grow in the short term amid rising costs and the increasing demand from steel mills. Ferrochrome prices continued to rose, and the demand for ferrochrome from steel mills still increased, but the spot ferrochrome available in the market was tight, thus the quotations from ferrochrome plants grew. The short-term ferrochrome prices will still remain rangebound with some upward potential. The prices of #304 cold-rolled coils moved between 16,900-17,200 yuan/mt, and those of #304 hot-rolled coils were between 16,200-16,600 yuan/mt. #316L/2B was quoted at 27,800-28,600 yuan/mt in early trading, #201/2B at 9,700-10,000 yuan/mt, and #430/2B at 7,800-8,200 yuan/mt. As of 10:30 a. m. (Beijing time), the SHFE SS 2211 contract stood at 16,330 yuan/mt, and the spot premiums in Wuxi were 740-1,040 yuan/mt. (Spot price of deburred edge products = Spot price of burr edge products + 170 yuan/mt)