SHANGHAI, Mar 4 (SMM) - Prices of stainless steel in the Foshan market inherited the rising trend yesterday and soared today. In just two days, the prices of Delong stainless steel increased by nearly 1,000 yuan/mt, rising to 18,700 yuan/mt-18,800 yuan/mt (base price). The market was prosperous. Driven by the restrained demand downstream and the sharp drop of prices in the early stage, the prices significantly increased at present. On fundamentals, import losses of pure nickel were rapidly expanding. The raw materials of long-term orders of domestic steel mills could not arrive on time before the price ratio was improved, resulting in a shortage of raw materials in China. Accordingly, support from the cost was stronger than before. Besides, some longs’ purchasing also contributed to the rise of prices. SMM believes that the prices will fluctuate at a high level in the following days.
Prices of state running 304/2B coil-cut edge were 19,000-19,300 yuan/mt. Prices of private 304/2B coil-raw edge stood at 18,300-18,700 yuan/mt, and the prices of 304/No.1 (width≈166.67 cm) were 18,400-18,800 yuan/mt. As of 10:30 a. m., the SHFE SS 2204 contract stood at 18,735 yuan/mt, and the spot premiums in Foshan were 435-735 yuan/mt (Spot price of deburred edge products = Spot price of burr edge products + 170 yuan/mt).