Nickel, Manganese, Chromium High Does Not Fall Downstream Stainless Steel Breakdown Cost Price.

Stainless steel continued to rise in the first three quarters of this year, falling by more than 25% after hitting a record high in late September. And stainless steel main raw materials nickel, manganese, chromium and other high shock, resulting in some stainless steel production enterprises due to cost inversion and announced production cuts, which listed companies have also felt pressure. More severe is, downstream traders and end users told reporters: "stainless steel prices have not yet in the end."

Wang Zhiqiang, an analyst at Soochow Futures, told reporters: "The rise in stainless steel raw materials is related to domestic policies on the one hand and import shortages due to the epidemic overseas. However, there are some recent raw material prices began to fall. August and September stainless steel prices high, some enterprises gross margin can reach about 20%, and now is the industry demand off-season, downstream demand to reduce the price decline, making the current stainless steel prices close to the enterprise production costs and even began to appear losses.

Stainless steel has fallen after rising costs

From the beginning of this year to September, stainless steel prices as a whole higher, futures market stainless steel index from 14000 yuan/ton near climbed to the highest nearly 22,000 yuan/ton, and in late September after the rapid decline in market prices, recently fell to 16000 yuan/ton near, down more than 25%.

The picture

2021 stainless steel spot, futures price trend chart (data source: MysteelData)

多发性骨髓瘤chun-tian li分析师昨日的2021 China's stainless steel & metal furnace charge conference recalls, demand growth in the downstream stainless steel 2021 produces strong impetus to domestic consumption, and exports, foreign production is limited because of the outbreak and consumer demand is still, so domestic exports continue to increase in the first half of the year and a new high in June, In the domestic and foreign demand double rise driven by stainless steel prices before October strong performance, while stainless steel production is also increasing, the overall performance of supply and demand double strong trend.

Stainless steel in the early substantial rise to bring greater impact on the downstream, hebei machinery factory said: "this year due to the rise in stainless steel and steel prices, many orders this year profits were eaten up by the price of raw materials."

And in late September due to the decline in domestic downstream demand growth, exports also began to fall, at the same time expected foreign production will gradually recover, the market demand growth is expected to decline weakened, leading to the rapid decline in stainless steel prices. Recently, it has fallen below the production cost line of enterprises, and some enterprises have announced production cuts. On December 4, Lianyungang Huale Alloy Group Co., Ltd. announced the suspension of most of its production units. But at present, the supply side of the reduction in production relative to the demand deceleration is slow, the current market shipments are still under pressure.

Delivery pressure is also confirmed by the client and the downstream in the market, heze navigation, stainless steel pipe factory manager yoon told reporters: "now prices, market demand up slowly, but due to the large recent stainless steel prices decline, the company also dare not too much stock up, downstream widely expected market price has a fall."

Shandong a trader also expected the market price or continue to fall: "200 series stainless steel may fall to 8000 yuan/ton near, 300 series stainless steel may fall to 11,000 yuan/ton near."