China’s domestic stainless steel market, particularly the 304 grade, is anticipated to experience a surge in spot prices today in Jan 11. This unexpected rise is attributed to a significant uptick in both the nickel index and stainless steel index at the Shanghai Exchange, fueling market sentiment in the morning. Such a rare price increase, especially before the extended Spring Festival holiday, has taken the market by surprise.
This sudden shift may be linked to recent revelations: Indonesian presidential and vice-presidential candidates Ganjar Pranowo and Mahfud MD have pledged to halt the construction of new nickel smelting plants if elected in 2024. This move aims to sustain Indonesia’s nickel reserves. Amidst the abundance of nickel pig iron producers, the Indonesian government is focusing on encouraging investments in high-pressure acid leach (HPAL) smelters rather than those using rotary kiln electric furnace (RKEF) technology.
We will continue to closely monitor this surge to determine whether it is a substantial market movement or merely speculative. Further analysis of the underlying reasons will be provided to keep you informed.
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Post time: Jan-12-2024
