This week, stainless steel spot prices fell slightly more than production costs, further worsening the inversion between stainless steel mill prices and costs. Taking 304 cold-rolled products as an example, based on raw material prices on the day, the full cost profit margin was -1.19% this week; calculated based on raw material inventory costs, the margin was -0.55%. Nickel-series raw material costs, high-grade NPI prices remained in the doldrums this week. Although nickel ore prices are currently holding firm and NPI traders are broadly bullish, SHFE nickel futures have been weak recently, while downstream stainless steel prices have struggled to rise. Stainless steel mills themselves are under heavy cost pressure and have shown low acceptance of high-priced raw materials, resulting in sparse market transactions recently; affected by this, high-grade NPI traders have faced considerable transaction pressure, and the price center edged lower slightly. As of this Friday, high-grade NPI with a grade of 10-12% fell by 2 yuan per nickel unit to 1,081.5 yuan/nickel unit. Stainless steel scrap market, stainless steel scrap prices were stable this week, and the decline in finished stainless steel prices did not transmit to the steel scrap market, while prices of substitute furnace charge also remained stable. Tightness in tax invoices eased, the economic advantage of steel scrap became more evident, and high stainless steel mill production schedules drove higher consumption, lifting market transactions and easing inventory pressure. However, finished product prices struggled to rise, limiting upside room for steel scrap prices, which are expected to remain stable in the short term. As of this Friday, the price of 304 off-cuts in Shanghai rose by 100 yuan/mt, with the latest quote at around 10,150 yuan/mt. Chrome-series raw material costs, high-carbon ferrochrome prices dropped back slightly this week. Although some ferrochrome producers recently reported maintenance and production cuts, and stainless steel production schedules for April remained high, leaving retail spot supply in the ferrochrome market relatively tight, stainless steel mills had built relatively ample ferrochrome raw material inventories earlier. Meanwhile, high port inventories of chrome ore recently caused some loosening in chrome ore spot prices. In addition, ferrochrome capacity has already reached a high level, the rainy season in south China is approaching, and ferrochrome producers outside China are resuming production. With ferrochrome producers lacking confidence in the outlook, ferrochrome prices still faced some downward pressure. As of this Friday, high-carbon ferrochrome prices in Inner Mongolia fell 25 yuan/mt (50% metal content) WoW to 8,625 yuan/mt (50% metal content).

Raw material side, spot lithium carbonate prices began to rise this week, while cobalt sulphate and nickel sulphate prices remained temporarily stable.

Inter-product price spreads are a segment of the rebar spread system characterized by complex logic and abundant trading opportunities. Unlike the spot-futures price spread, which reflects the spot-futures structure, and calendar spreads, which reflect near- and far-term expectations, the core of inter-product price spreads lies in macroeconomic structural adjustment and profit distribution across the industry chain. From the perspective of the industry chain, inter-product price spreads for long steel products are mainly concentrated in the following four areas:

SMM March 31 News: Raw material side, lithium carbonate prices fluctuated this week, cobalt sulphate prices dropped slightly, and nickel sulphate prices were temporarily stable.

For almost four weeks, the war against Iran has kept the world on edge – a conflict that leaves deep marks not only geopolitically but also economically. Volatility and uncertainty in global markets are increasing daily.

This week, stainless steel spot prices and production costs rose in tandem, though the losses between steel mill costs and prices narrowed slightly. Taking 304 cold-rolled products as an example, based on raw material prices on the day, the full cost profit margin was -0.7% this week; calculated based on raw material inventory costs, it reached 1.15%. Nickel raw material costs, high-grade NPI prices remained in the doldrums this week. Although news disruptions from Indonesia persisted during the week and nickel ore prices held up well, with most NPI producers suffering losses, stainless steel prices currently struggled to rise, while steel mills themselves faced significant cost pressure and showed low acceptance of high-priced raw materials. Although the NPI market had the intention to probe higher, weak overall transactions constrained it, and actual price increases faced resistance. As of this Friday, high-grade NPI with a grade of 10-12% fell by 0.5 yuan/nickel unit to 1,083.5 yuan/nickel unit. Stainless steel scrap market, stainless steel scrap prices rose slightly this week, mainly boosted by macro news, stronger futures, and rising finished steel prices. The US-Iran conflict and news of Indonesia taxing nickel products stimulated stronger SS futures, pushing stainless steel spot prices higher and in turn boosting stainless steel scrap prices. Although stainless steel scrap had a clear economic advantage, tight tax invoices caused by reverse invoicing and high inventory capped its upside room, so it only posted a slight increase. Overall, the stainless steel scrap market saw a mild upward trend this week, with short-term support still in place but insufficient upward momentum. If the tax invoice issue remains unresolved, prices are expected to continue fluctuating. As of this Friday, the price of 304 off-cuts in Shanghai rose by 100 yuan/mt to about 10,150 yuan/mt. Chrome raw material costs, high-carbon ferrochrome prices remained stable this week. Although overseas market chrome ore futures prices still had room to be raised, China port chrome ore inventory remained high. In addition, ferrochrome producers recently showed weak willingness to purchase chrome ore, and China chrome ore prices pulled back, weakening cost support for ferrochrome. Meanwhile, current ferrochrome retail prices were already significantly higher than steel mill tender prices, and further gains in high-carbon ferrochrome prices faced resistance. As of this Friday, high-carbon ferrochrome prices in Inner Mongolia were unchanged from last week at 8,650 yuan/mt (50% metal content).