SMM

SHANGHAI, Jan 3 (SMM) - Last week, spot prices of #304 stainless steel rose slightly. Delong offered discounts to its agents in the east China market, and Tsingshan Group shipped many Indonesian stainless steel to the market. On the demand side, the trading volume of futures was acceptable, while the spot transactions continued to be slack. Warrant trading also squeezed out some of the spot demand. The downstream companies were less willing to restock, and they held a wait-and-see attitude towards the price trend before the Chinese New Year and the terminal sentiment. If the impact of the COVID-19 outbreaks subsides at that time, terminal consumption may pick up. By then, the downstream companies may consider stockpiling to prepare for the market after the Chinese New Year. The costs of stainless steel remained firm. High-grade NPI prices rose slightly. Spot NPI supply was scarce in the market, and NPI plants held their prices firm. Some large steel mills made some inquiries, but the mills had to raise their purchase prices due to the supply tightness of NPI. Short-term NPI prices will move rangebound with some ups. The prices of high-carbon ferrochrome remained stable. The bid prices were higher than expected but were lower than the retail prices. Spot ferrochrome supply remained tight in the retail market, but the steel mills still intended to restock before the Chinese New Year. However, the traded prices could hardly be high amid the price difference between the bid prices and the retail prices. SMM expects the short-term ferrochrome prices to be stable. At the end of the year, the downstream companies became less willing to restock and held a strong wait-and-see sentiment, but the stainless steel prices were firmly supported by the costs. SMM believes that the stainless steel prices will be stable with some upward potential this week.