The current low level of both domestic and abroad stainless steel social inventory has strongly supported stainless steel prices, while the flat supply and demand have been hard to push up nickel prices.

Shanghai stainless steel prices rose against the trend of nickel prices yesterday (May 9). Stainless steel prices moved sluggishly under the uncertainty of the COVID-19 epidemic. The social inventory continues to pile up, but the downstream sales are relatively weak, showing an oversupply situation.

According to the current raw material prices, the production cost of steel mills and sales prices are completely opposite, and even some steel mills have already faced marginal losses. Therefore, some steel mills have begun to arrange production reduction and maintenance in May.