SHANGHAI, Sep 13 (SMM) - Last week, steel mills raised their selling prices and suspended the transactions several times. Spot prices of stainless steel rose steadily, and the weekly increase of the SS contract exceeded 1,000 yuan/mt. Last Friday, the spot prices were quoted with discounts. Last Thursday, warrants inventory grew sharply, and steel mills will still deliver a large amount in the future. On the macro front, the central bank of China cut the RRR to stimulate liquidity, boosting the nonferrous metals market, which creates a good macro atmosphere. On the news front, the production of many large steel mills in Europe was hindered by the energy crisis, and South Korea’s POSCO also suspended its production suddenly. In September, the overseas supply of stainless steel has decreased, but the rigid demand still existed and even recovered. The overseas demand is growing evidenced by the falling inflow of Indonesian stainless steel to China. On the demand side, there is still a short-term mismatch between supply and demand. The market transaction picked up, providing investors chances to go long. The smooth development of the terminal consumption is of utmost concern. On the supply side, the total output of steel mills in China in September is expected to increase slightly. Prices of NPI, ferrochrome and scrap all stabilised and rebounded, which strongly supported the SS contract. Overall, domestic demand has picked up, and overseas demand increased more than expected, hence the upward momentum of SS contracts was strong. However, the market still needs to keep an eye on whether steel mills will increase their production more than expected, and whether the downstream consumption can be successfully transmitted to the terminals. SMM believes that the SS futures prices will remain rangebound with some upward potential this week.