Stainless steel futures contract showed weak performance
The stainless steel futures contract showed weak performance last week. As of the closing price on March 7, it reached 13,765 yuan/mt, down 230 yuan/mt from February 29. From a macro perspective, Indonesia RKAB approval boosted highgrade NPI and stainless steel prices, while prices return to fundamental level as macro factors fade. On March 7, US CPI data fell short of expectations. Powell cited rising unemployment to advocate for a faster Federal Reserve rate cut. His dovish stance lifted commodity prices, especially nonferrous metals in the short term. SHFE nickel sees more buyers than sellers this month, favoring bullish positions. Bearish traders are cutting losses and increasing their positions. The actual selling prices of steel mills are lower than their guidance prices. Social stocks rose due to massive shipments by steel mills, but the build-up was smaller than expected. High-grade NPI traders lowered their prices last week. The nickel oversupply is likely to continue in the short term, maintaining stability in stainless steel spot prices. Stay alert for changes in steel mills’ guidance prices and updates on the Indonesia RKAB approval. In short, SMM expects a stainless steel contract rebound due to macro factors following a recent decline, with a subsequent period of relative stability and oscillation.
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