SS Contract to Fluctuate amid Growing Spot Supply

SHANGHAI, May 6 (SMM) - Stainless steel futures prices soared on May 4, once growing to 15,550 yuan/mt, and then mainly hovered around more than 15,480 yuan/mt. At last, the contract closed at 15,490 yuan/mt. On May 5, the prices were on a downward trend and once went down to around 15,300 yuan/mt, pushing up the trading volume and at the same time greatly reducing the open interest. Some longs left the market. Price hike on May 4 may be caused by the market sentiment. The spot supply is growing owing to the overcapacity and increase in production schedules of stainless steel mills in May. Therefore, the futures prices will remain rangebound next week.