SunSirs: The Stainless Steel Market Was Sluggish as a Whole in August Due to High Temperature Power Cuts

Price trend

According to the price monitoring of SunSirs, the price of stainless steel fell weakly in August. The price of stainless steel at the beginning of the month was 15,392.5 RMB/ton, and the price of stainless steel fell to 14,773.75 RMB/ton at the end of the month, with an overall decrease of 4.02% and a year-on-year decrease of 15.13%.

According to data from SunSirs, in August, both upstream nickel prices and stainless steel spot prices fell slightly.

Analysis review

According to the data of SunSirs, the upstream of stainless steel was in a downward trend except for scrap. Iron ore fell by as much as stainless, and nickel fell more. Upstream nickel prices were weak this month due to loose supply and poor downstream demand for new energy and stainless steel.

Dragged down by the real estate cycle, the stainless steel market was sluggish. Since March, stainless steel prices have "fallen endlessly". Although the raw material side was also in a falling channel, the spot price of stainless steel fell more. In addition, high-temperature power and production restrictions dragged down the downstream operating rate, and steel mills continued to reduce production. Affected by the domestic epidemic and the squeeze of Indonesian stainless steel on the domestic market, the stainless steel market was weak.

Market outlook

To sum up: In August, steel mills continued to reduce production, and the reduction in production still supported stainless steel prices. However, in the off-season of consumption, coupled with high temperature power cuts, downstream demand is sluggish. In September, the traditional peak season is approaching, and demand may be boosted to a certain extent, but the overall economy is sluggish, and the increase may not be large. Stainless steel prices in September are expected to be better than in August as a whole, but the increase may be limited.

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