Spot Stainless Steel Transactions were Slack as Most Market Players and Downstream Companies are on CNY Holiday

SHANGHAI, Jan 16 (SMM) - Spot prices of #304 stainless steel grew slightly last week. On the supply side, shipments from steel mills were low, but the market got a certain amount of warrant sources. On the demand side, most of the processing factories ramped up the production to deliver the previously received orders and made no stockpiling of raw materials before the Chinese New Year. The costs of stainless steel remained firm. Prices of high-grade NPI were stable last week. Spot NPI supply in the market was tight, and the plants adjusted their production reduction plans according to the production scheduling of steel mills. Recently, NPI factories have slightly lowered the quotes amid the fall in the futures prices. However, the steel mills may not resume the NPI purchases until after the CNY holiday since they have completed the restocking. SMM believes that the short-term NPI prices will remain stable. High-carbon ferrochrome prices also grew somewhat. The transportation was not smooth due to the upcoming Chinese New Year. In addition, the arrivals of chrome ore at ports in January are not expected to be sufficient, which may further push up the ferrochrome prices. SMM expects the ferrochrome prices to be steady in the near future. Recently, the stainless steel market has remained slack near the year-end. And the supply and demand will further weaken this week. The stainless steel prices may still be stable this week with the firm cost support.