Shanghai, October 13 (SMM)-Since September, stainless steel spot prices have been fluctuating significantly. In September, the price rose by 1,000 yuan/ton. After the National Day, market purchases were active, and the price further rose by 1,000 yuan/ton. Now the price has stabilized.
As of October 13, the price of Wuxi 304/2B was 21,800 yuan/ton, and the price of 304/NO.1 was 20,400 yuan/ton. The price of Foshan 304/2B is 21,650 yuan/ton, and the price of 304/NO.1 is 20,700 yuan/ton.
Electricity rationing is still strictly enforced throughout the country. The government has introduced new policies to set a certain range for electricity price fluctuations in order to promote the marketization of electricity. Electricity prices have risen in many areas. Electricity prices in Inner Mongolia increased by 0.2-0.25 yuan/kWh.
Rising electricity prices accounted for 20% of NPI's total raw material costs. Since NPI is the raw material of stainless steel, the higher NPI cost will support the price of stainless steel.
Demand is weak and market consumption is light. End producers may suffer losses due to the surge in stainless steel prices. Traders said that some of the terminal industry stores are at greater risk of loss, and traders are just waiting to see the changes. In the case of high profits for stainless steel hot-rolled and cold-rolled products, a temporary price drop or cost increase will not affect traders’ quotations.
The 200 and 300 series products are more affected by the dual control of energy consumption than the 400 series. However, the decline in the output of the 400 series was mainly due to the weakening demand for downstream car exhaust pipes.
The curtailment may continue until the end of the year, and some steel mills will limit production. Dual regulation of energy consumption has weakened the supply and demand of stainless steel, but rising electricity bills and production restrictions are expected to support a steady rise in stainless steel prices in October.
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