Stainless Steel Prices Are Expected to Be Weak in The Short Term

Ferronickel: On September 6, the average price of SMM8-12% high nickel pig iron was 1,175 yuan/nickel point (ex-factory tax included), which remained the same level as the quotation on the previous working day.

On the supply side, affected by cost factors, ferronickel production showed a downward trend in August, and current liquid spot prices tend to be tight. The Chinese domestic ferronickel market has a strong bullish sentiment.

From the downstream demand side, the current stainless steel spot market continues to be weak, high stainless steel prices are difficult to transmit to the terminal, and the current raw material inventory of steel mills is still at a low level. The nickel ore quota incident has not yet been implemented and the domestic trade benchmark price premium is rising. The cost of local nickel pig iron in Indonesia is gradually strengthening, and the downward space for nickel iron prices is expected to be limited.

Stainless steel: Today's spot market 304 cold-rolled transactions are average, and demand cannot be transmitted smoothly to the terminal; hot-rolled transactions are acceptable, and steel mills are superimposed on reducing shipments, so inventories may be slightly digested, and steel mills will continue to maintain high production schedules in September. , but terminal demand has not yet seen growth, steel mills are bearish on subsequent stainless steel expectations, and stainless steel prices are expected to be weak in the short term.