SHANGHAI, Dec 13 (SMM) - The futures prices of stainless steel kept falling by more than 1,000 yuan/mt last week, and the spot prices remained in a downward trend.
The January spot and futures prices released by steel mills further dampened the market transactions. The stainless steel spot prices fell significantly last week. The stainless steel is expected to decline further due to the traditional off season and low exports.
On the supply side, many stainless steel plants will reduce the production for annual maintenance or saving costs. The total stainless steel output is expected to drop by 97,000 mt in December and fall by 290,000 mt in January. However, the production reduction will provide little support to the prices. It may only slow down the price decline amid the weak demand. The prices of raw materials are expected to fall, but the stainless steel mills have already suffered losses.
The SHFE SS2201 is expected to trade between 15,100-16,600 yuan/mt.