Price trend

According to the price monitoring of SunSirs, the price of stainless steel slightly increased last week. As of July 18th, the daily average price of spot 304/2B stainless steel flat plate 1.0 * 1219 * 2438 (tolerance 0.91) was 11,914.29 RMB/ton, up 0.48% from the beginning of the week and down 7.44% year-on-year.

According to the price difference analysis tool of SunSirs, the prices of nickel and stainless steel are basically similar, and the two have been mainly fluctuating recently.

Analysis review

This week, the total inventory of stainless steel was 1.1478 million tons, a decrease of 1.67% compared to last week. Among them, cold rolled inventory increased while hot rolled inventory decreased.

Raw materials: The quota approval for RKAB in Indonesia has reached 360 million, but the usage in the first half of the year was only 120 million. In order to meet the mining target, the overall price mentality of the mine may have weakened. Last week, the transaction price continued to fall, and steel mills maintained a mentality of price suppression. Stainless steel production continued to decline, inventory accumulates, and weak consumer demand made it difficult to drive up nickel iron prices.

Supply and demand side: The production schedule slightly decreased in July, and the reduction in production was not as strong as expected. In July, the production was 3.268 million tons, a month on month decrease of 0.72% and a year-on-year decrease of 1.22%. In the off-season of downstream consumption, the production of household appliances had decreased, inventory digestion was slow, and there was a lack of upward driving force.

Future outlook:

The production schedule continued to decline, downstream demandwas weak, and there was a lack of upward driving force, but low inventory provided some support. It is expected that stainless steel prices will fluctuate in the short term.

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