Weak Demand Dominates, Stainless Steel Prices Continue to Decline After Hitting Bottom [SMM Stainless Steel Spot Daily Review]

SMM Stainless Steel Spot Daily Review: Weak Demand Dominates, Stainless Steel Prices Continue to Decline After Hitting Bottom. On April 25, stainless steel prices continued their downward trend this week. Despite spot prices nearing a three-year low, transactions remained sluggish amid a cautious market sentiment. Although social inventory of stainless steel dropped significantly this week and the Labour Day holiday is approaching, market activity remained subdued. On Friday, Tsingshan Group lowered its prices across the board, further driving market prices down.In the futures market, the most-traded contract SS2506 weakened and declined. At 10:30 AM, SS2506 was quoted at 12,670 yuan/mt, down 75 yuan/mt from the previous trading day. In the spot market, the average price of cold-rolled 304/2B coil in Wuxi was 13,000 yuan/mt, while in Foshan it was 13,050 yuan/mt. The price of cold-rolled 316L/2B coil in Wuxi was 23,650 yuan/mt, and in Foshan it was 23,800 yuan/mt.This week, despite the approaching Labour Day holiday, the market did not show active pre-holiday stockpiling. Due to unclear macro policy direction, end-user customers generally maintained a cautious wait-and-see attitude. Current stainless steel prices have fallen to low levels, with steel mills' costs and selling prices severely inverted. Even though the downside room for high-grade NPI prices is limited and high-carbon ferrochrome steel tender prices have risen, the overall cautious sentiment in the market remains dominant, putting significant pressure on stainless steel producers and traders to sell. The persistent weakness in demand has become a key factor suppressing stainless steel prices. Overall, it is expected that stainless steel prices will continue to show a weak trend in the short term.

On April 25, stainless steel prices continued their downward trend this week. Despite spot prices nearing a three-year low, trading remained sluggish amid a cautious market sentiment. Although social inventory of stainless steel significantly decreased this week and the Labour Day holiday approached, market activity remained subdued.

On Friday, Tsingshan Group comprehensively lowered its prices, further driving market prices down. In the futures market, the most-traded contract 2506 weakened and declined. At 10:30 AM, SS2506 was quoted at 12,670 yuan/mt, down 75 yuan/mt from the previous trading day.

In Wuxi, the spot premiums/discounts for 304/2B were in the range of 400-600 yuan/mt. In the spot market, cold-rolled 201/2B coils in Wuxi and Foshan were both quoted at 8,100 yuan/mt; cold-rolled trimmed 304/2B coils averaged 13,000 yuan/mt in Wuxi and 13,050 yuan/mt in Foshan; cold-rolled 316L/2B coils in Wuxi were priced at 23,650 yuan/mt, while in Foshan they were 23,800 yuan/mt; hot-rolled 316L/NO.1 coils were quoted at 22,850 yuan/mt in both regions; cold-rolled 430/2B coils in Wuxi and Foshan were both priced at 7,500 yuan/mt.

This week, despite the approaching Labour Day holiday, the market did not show a positive pre-holiday stockpiling trend. Due to the unclear direction of macro policies, end-user customers generally maintained a cautious wait-and-see attitude. Current stainless steel prices have fallen to low levels, with steel mills' costs and selling prices severely inverted.

Even though the downside room for high-grade NPI prices is limited and high-carbon ferrochrome steel tender prices have risen, the overall cautious sentiment in the market remains dominant, putting significant pressure on stainless steel producers and traders to sell. The persistent weakness in demand has become a key factor suppressing stainless steel prices. Overall, it is expected that stainless steel prices will continue to show a weak trend in the short term.

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