SunSirs: This Week, the Stainless Steel Market Was Running Smoothly（June 29-July 3）

Price trend

According to the data monitored by SunSirs, as of the weekend, the average daily price of spot 304/2B stainless steel flat plate 1.0*1219*2438 (tolerance 0.91) is now quoted at 12,241.67 RMB/ton, an increase of 0.07% from the beginning of the week of 12,233.33 RMB/ton, down year-on-year 7.82%.

Analysis review

The shocks of upstream nickel were strong

According to the price monitoring of SunSirs, nickel prices fluctuated and rose this week. As of the weekend, the spot nickel price was 104,716.67 RMB/ton, which was 3.49% higher than the 101,183.33 RMB/ton at the beginning of the week, 7.93% lower than the beginning of the year, and 6.44% higher than the previous year. At the beginning of this week, Shanghai's main nickel market opened at 101,460 points, and then the price was strong. It closed at 105240 points on Friday, a weekly increase of 3.54%. Lun Nickel closed at 13,095 US Dollars by Friday, a weekly increase of 3.40%.The overseas economic data released this week showed that the current economy was slowly recovering from the recession, the global manufacturing activity has slowed down, and the Sino-US economy was now showing signs of rebound. In May, the US nickel imports and exports increased both from the previous month, and metal demand was expected to face the dawn. , Nickel prices rose slightly.

According to the data of SunSirs, nickel and stainless steel prices were basically similar, but the recent trend of stainless steel was significantly weaker than nickel prices. Nickel prices have been supported due to tight nickel ore supply and economic data, but the stainless steel market has entered a low season due to bad demand, the price was difficult to increase.

The output of domestic crude stainless steel increased by 2.23% year-on-year in June

In June 2020, crude steel output of 32 domestic stainless steel plants was 2.53 million tons, an increase of 7.71% from May and 2.23% year-on-year; of which, the output of the 200 series was 858,200 tons, an increase of 5.06% month-on-month, and a decrease of 7.86% year-on-year; the 300 series was 1.242 million tons, an increase of 5.48% from the previous month, an increase of 11.11% year-on-year; the 400 series was 433,000 tons , An increase of 21.28% month-on-month and an increase of 0.96% year-on-year.

BIR expects global stainless steel demand to drop by 12% in the second quarter

According to the Stainless Steel and Special Alloys Committee of the International Recycling Bureau (BIR), global stainless steel demand in the second quarter of this year will drop by 12% year-on-year to 11.9 million tons. In addition, global nickel demand for the electric vehicle battery industry is expected to decline by 15% year-on-year this year. It is predicted that the overall demand for nickel in various industries will decline by 7% this year.

Market outlook

In summary, this week, the raw material nickel has supported stainless steel, but stainless steel output has increased and demand has fallen. Especially in the low season of July demand, stainless steel has a dilemma. It is expected that stainless steel will be stable in the short term.

If you have any questions, please feel free to contact SunSirs with marketing@sunsirs.com.