SHANGHAI, Dec 27 (SMM) - The SHFE SS contract kept rising last week, and the steel mills raised their selling prices as well as the spot guide prices. The spot prices in the stainless steel market were driven up, and the traders had relatively lower stocks, so they increased the purchases. The market transactions were active amid higher prices.
On the demand side, the market is in the traditional off-season in December and January, so the demand improved limitedly. The restocking boosted by price increase may not sustain.
On the supply side, many steel mills have started the maintenance in December, which may extend until after the CNY holiday, and the output will be mainly reduced in January. The 300 series output is expected to drop by about 250,000 mt. The supply and demand of stainless steel may weaken simultaneously.
The cost support still existed amid moderate orders, and the recovery of stainless steel production will mainly rely on the downstream demand and restocking. SHFE SS2202 is expected to move between 16,000-17,200 yuan/mt this week.