Spot Prices and Futures Prices of Stainless Steel both Rose and the Inventories

SHANGHAI, June 21 (SMM) - The spot prices in Wuxi and Foshan market increased again. The 304 prices in Wuxi were between 18,200-18,400 yuan/mt and 304 cold-rolled coil prices in Foshan stabled at 18,000 yuan/mt, 

the same as the 304 hot-rolled coil prices. The transactions in Wuxi market were active and the stainless steel futures rebounded significantly to 18,000 yuan/mt. According to the research, the in-plant inventory of a steel mill was at a low level as the inventory decline was huge and the production of phase II was suspended.

In addition, the steel mill held back cargoes as a trader has traded tens of thousands of mt of goods with it. In this case, the futures increased and the market prices also rose. Moreover, the market transactions also improved slightly.

The supply continued to decrease while the demand increased slightly. On the cost side, although the NPI prices were now close to the cost line, the prices are expected to further decline in the future. The overall cost still declined. 

In Wuxi today, the spot price of 304 cold-rolled coils quoted at 18,500-18,800 yuan/mt and 304 hot-rolled coils were 18,000--18,400 yuan/mt. 316L is expected to trade between 30,000-30,300 yuan/mt in the morning. As of 10:30 am (Beijing time), the SHFE SS 2205 contract stood at 18,355 yuan/mt, and the spot premiums in Wuxi were 315-615 yuan/mt. (Spot prices of deburred edge products = Spot prices of burr edge products + 170 yuan/mt).