China's stainless steel production cost forecasted to rise in Jun
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Update time : 2024-06-12 15:13:05
In May, China's futures prices of stainless steel continued to climb while spot prices remained relatively stable. The fluctuations in futures prices were primarily driven by macroeconomic factors and raw material supply.
Federal Reserve Board member Bowman highlighted that the current reserve level is insufficient, indicating that the Fed has not yet reached the point to halt its balance sheet reduction. Minneapolis Federal Reserve Bank President Kashkari mentioned the low probability of a rate hike but emphasized that no possibilities should be ruled out. He stated that convincing data on strong inflation over several months would be needed to consider a rate cut, and there would definitely not be more than two rate cuts this year.
In terms of nickel ore, the slow allocation of Indonesian nickel ore RKAB quotas has reduced the diversity of nickel ores. The latest information indicates that Indonesia has approved quotas sufficient to support nickel ore supply in the first half of the year, although the approval progress seems slow based on the newly added quotas.
In the stainless steel sector, market feedback suggests that Indonesia's Yong Wang's cold rolling mill plans to halt production for two months starting in June. The specific resumption time is yet to be determined. Additionally, the estimated production output of stainless steel smelting in Indonesia in June is around 400,000 tons, necessitating further attention to the return flow of Indonesian stainless steel. Preliminary estimates indicate that the raw material side remains robust, with an anticipated increase in steel production costs in June.
