Stainless Steel Futures Rose By the Daily Limit

21,Jan 2022

This week stainless steel futures repeat last week, although there was a correction, but the final momentum strong, January 20 stainless steel main contract trading limit, or 7.99% to 19,065 yuan/ton, a new high since October 27 last year. Spot also rose in the process of futures sharply pulled up, 20 xifo market prices adjusted for several times, Wuxi market 304 mainstream transaction prices up 300-400 yuan/ton.

Nickel prices into stainless steel futures up the main driving force

For the recent rise in stainless steel futures prices, Mysteel analysis believes that more benefit from nickel driven and capital driven. At present, the global nickel explicit inventory is at an extremely low position and continues to be destocked. Currently, the LME nickel inventory is at the lowest level since December 2019, while the domestic nickel inventory is also extremely low due to the low quantity of imported goods, and the marketable resources are tight. This leads to a sharp rise in nickel prices, pure nickel station 170,000 high, nickel iron and stainless steel prices relative to nickel price low valuation, driving stainless steel futures up.

Steel mills received orders in February to a good quarter market can be expected

Spot price rose, steel immediate profit repair, the current waste stainless steel process smelting 304 cold rolling profit rate is the best, spot profit up to 1000 yuan/ton; High nickel iron process profit margin also turned negative to positive. According to the calculation of high nickel iron 1390 yuan/nickel, 304 waste stainless steel 12100 yuan/ton, high carbon ferrochrome 8400 yuan /50 base ton, in the case of private 304 cold rolling 18300 yuan/ton, waste stainless steel process smelting 304 cold rolling profit margin 7.0%; High nickel iron smelting 304 cold rolling profit margin turned negative mainly to 0.3%.

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