Due to the increase in the raw material price of 201 stainless steel, the hot-rolled coil futures price of some steel plants is 23.2~31.1 USD/ton. Today, the stainless steel spot market is more serious due to shortages, and the quotations of some 1600mm-wide hot-rolled coil traders also slightly increased by 7.7 USD/ton, price: 1275.8usd/ton. Affected by the price increase of hot-rolled coil and the relationship between market supply and demand, the price of 201 cold-rolled stainless steel coil increased slightly.
201 cold-rolled stainless steel, width: 1300mm, rough edge, price: 1314.5usd/ton.
201 (J2) cold-rolled stainless steel, price: 1268.11 USD/ton.
201 (J5) cold-rolled stainless steel, price: 1268.11 USD/ton.
201 hot rolled stainless steel, width: 1600mm, price: 1268.11usd/ton.
So why is the price of 201 stainless steel rising?
First of all, the Chinese government requires China’s largest ferrochrome production area to reduce energy consumption. The prices of coke, chrome ore, and electricity have risen. In addition, the main ferrochrome production areas have also imposed power restrictions on electricity consumers, which has a significant impact on the production of local high-carbon ferrochrome companies. The factories involved have stopped production one after another.
The industry expects that this round of rotation and production suspension will cause the monthly high chromium production in Inner Mongolia to drop by more than 100,000 tons, and the high chromium production in this region accounts for more than 60% of the country. The average monthly high chromium production in 2020 is about 302,200 tons, a decrease of about one third.
High chromium production has plummeted and prices have skyrocketed. The production cost of stainless steel will inevitably rise, leading to an increase in stainless steel prices.
Second, the price of electrolytic manganese has risen. Spot resources in the market are hard to find. Leading up to the price of stainless steel.
Therefore, due to the increase in the cost of raw materials and the influence of market supply and demand in major stainless steel factories, the holiday is coming. Stainless steel prices are about to rise sharply.