SHANGHAI, Feb 23 (SMM) - The spot prices of stainless steel in Foshan city remained flat in the morning trading. However, due to the decrease in prices in Wuxi city as well as the broadly falling futures prices, the prices in Foshan started to fall in the afternoon trading, with offers at 18,300-18,500 yuan/ mt. After the CNY holiday, the demand has been modest after concentrated restocking, and the consumption was below the supplies from steel mills. And there are still many uncertainties about whether there will be another procurement boom in the future.
Nonetheless, the stainless steel spot prices have begun to all, and the downstream may enter the market one after another at the right time.
Today, stainless steel futures market dropped after opening the day. On the cost side, NPI spot supply was low and the prices were high. However, due to the large imports of NORNICKEL nickel, and the geopolitical tension between Russia and Ukraine that changes the global trade landscape, SHFE nickel underperformed LME nickel.
On the other hand, however, more NORNICKEL nickel is expected to enter China in the short term, but the global supply and demand pattern has not been changed radically. In terms of stainless steel scrap, 30% tax rate has been cancelled, hence the prices have dropped greatly.
On the whole, the stainless steel prices dropped in the short term, which made it easier for steel mills to take orders, hence it is not completely negative.
SMM expects that the spot prices of stainless steel will keep moving rangebound in the near term.