Stainless steel weak stability pattern will be difficult to sustain

Raw material prices rebounded LME nickel: This week, LME nickel reached a peak of $18,620 at 4 o'clock on Friday, the lowest point was nearly $17,750, and the spread was at $870. This week, the total nickel price rose by $50/ton.
Nickel spot: The price of nickel rose, driving the market price to rebound, but the downstream consumption was weak, and the transaction continued to be sluggish. Some traders have entered a semi-fake state because they are not optimistic about today's transactions. The major downstream consumers are also more cautious in recent purchases. So far, there has been no upswing in the past year. The market has a strong wait-and-see attitude and the transaction is relatively weak. At present, the 1# nickel price of the Yangtze River market is 127000-129000 yuan/ton, the price of 1# nickel in Shanghai market is 126300-128300 yuan/ton, the price of Guangdong nonferrous 1# nickel is 127500 yuan/ton, and the price of 1# nickel in Huatong market is 127000-129000 yuan / ton.
Domestic ferronickel: At present, there are not many manufacturers in the ferronickel industry, and the market spot inventory has been reduced by consumption for a period of time; with the recent frequent rebound of nickel, the price of pure nickel and high ferronic steel has been improved; Recently, the bidding and procurement work of large-scale stainless steel plants has been promoted, and the relationship between supply and demand in the ferronickel market has also changed. The quotation has risen slightly by RMB 10-20/ton. The content is 10 ≤ Ni ≤ 15 high ferronickel current price 1280-1310 yuan / nickel, the content is 4 ≤ Ni ≤ 6 ferronickel is currently quoted 1340 yuan / nickel, the content is 6 ≤ Ni ≤ 8 ferronickel is currently quoted 1350 yuan / Nickel, the content of 1.6 ≤ Ni ≤ 1.8 low ferronickel is currently quoted at 3750 yuan / ton.
Stainless steel market is weak and stable At present, the market resource tension has not changed. Therefore, the domestic market stainless steel offer has remained basically stable. However, due to the arrival of the year, the financial situation of the merchants remains the same. Some of the sources of supply have been supplemented, based on the market's bearish and inventory pressures, the merchants have plunged their quotations, eager to improve the slow shipping situation. Currently,
This week, Taigang 304/2B 2.0*1219 (unit: yuan / ton)

	Highest price	Lowest price	Average price this week
Wuxi	20100	19900	19983
Foshan	20400	20200	20333

This week, Taigang 304/No.1 4.0*1500 (unit: yuan / ton)

	Highest price	Lowest price	Average price this week
Wuxi	19000	18800	18900
Foshan	18900	18900	18900

In the market, low-cost resources are gradually added. At present, in order to speed up the process of destocking, steel mills continue to lower the factory price, resulting in a narrowing of price inversion. For example, Baosteel Stainless January 2012 300 series stainless steel futures price, 304/2B 20800 yuan / ton (cut edge), the same as the ring; 304 / NO.1 19700 yuan / ton (cut edge), the chain fell 300 yuan / ton .
This week, according to reports, Lianzhong, Southwest Stainless Steel and other steel mills have thousands of tons of resources to reach the market, the price is slightly lower than the market transaction price. For example, Lianzhong 304 hot-rolled spot is sold in batches, with four-foot and five-foot specifications. The thickness is concentrated at 2.3mm-6.0mm, the quantity is nearly 1,000 tons, and the tax-included price is 18,400 yuan/ton. The southwest stainless 304 hot-rolled white skin arrives in Foshan. The market has a thickness of 3.0 and a tax-included price of 18,500 yuan/ton.