Raw material prices rise, steel smelting costs increase, facing greater production pressure, since October began to reduce the production of stainless steel, including 400 series of crude steel output is expected to fall below 400,000 tons in December, down 15.9%. Downstream inquiry transaction, the department of market inventory decline, the formation of price support.
High carbon ferrochrome within months to maintain a strong stable situation, the mainstream price rose 600 yuan to 8700 yuan /50 base ton near the beginning of the month. Raw material end chromium ore and coke prices again a small increase, the production cost of ferrochrome further rise, ferrochrome prices. The current epidemic situation is relatively severe, the cargo transportation may be delayed by the impact of the shortage of transport capacity, the Spring Festival reserve front is extended, the downstream year-end replenishment demand is still there, the ferrochrome market is expected to maintain high price and stable operation in the short term. The rising price of scrap steel in the month also leads to the increase of the cost of low phosphorus/dephosphorized hot metal in steel mills, the price of 400 series of main raw materials increases, the cost increases, and the production pressure of steel mills climbs.
Affected by the cost of the fourth quarter 400 series of stainless steel production high down, coupled with merchants at the end of the reserve, 400 series of stainless steel inventory significantly reduced, as of December 22, the national mainstream market stainless steel social inventory total weekly rise 7.23% to 885,000 tons, showing a 200 series, 300 series increase, 400 series down characteristics. Among them, the total inventory of 400 series is 172,700 tons, down 46,700 tons from the beginning of October, down 21.27%, the inventory of 400 series is at a stage low.
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