After a week of rising, as the resources of major steel mills have been put into storage one after another, but the downstream has not yet entered the market, the hot rolling steel market has also receded, and the price of stainless steel has a downward trend. The February sales day has ended. So how will stainless steel prices go in March? What is the current market mentality?
The Fed has continued to maintain an easing view in the near future. However, with the recent economic data released and the epidemic under effective control, the market has strong expectations for early tightening of funds; domestically, in order to prevent high inflation risks, there is a high probability of monetary policy this year. Gradually tightening, most believe that the entire global monetary policy will be tightened in the second quarter, but some insiders believe that the current global economy has not yet recovered quickly and funding will still be loose.
Affected by the increase in ocean freight and the rainy season in the Philippines has not ended, the downstream ferronickel plants are actively purchasing, and the transaction price of nickel ore has risen sharply. About 1.5% of nickel ore outside CIF prices rose to 80 US dollars/wet ton, 1.8% nickel ore price rose to 105 US dollars/wet ton. The sharp increase in the price of nickel ore will further boost the price of domestic ferronickel.
Domestically, with the increase in the “dual control” policy in Inner Mongolia, the output of high chromium in Inner Mongolia has dropped sharply, which has also mobilized the enthusiasm of other high chromium production companies in the main production areas to start construction. The regional factory also has 6 production lines, some of which have already started, and the total monthly output of high chromium will reach about 14,000 tons.
An industry insider said: “From the recent purchase of tens of thousands of tons of ferronickel by the South China Steel Plant in late February, the transaction price reached 1,200 yuan per nickel point, compared with the purchase price in January, it may continue to push up the production cost of stainless steel. Thousands of yuan per ton, which seems to be consistent with the price increase of 304 stainless steel year after year.
“In addition, although the southern high chromium production has been supplemented, compared with the reduction in Inner Mongolia, the national ferrochromium supply cannot keep up with the rhythm of stainless steel high production schedule, and the contradiction between supply and demand is more prominent!“