Price trend

According to SunSirs price monitoring, stainless steel prices rose slightly last week. As of August 8, the average daily price of 304/2B stainless steel flat sheet (1.0*1219*2438mm (tolerance 0.91") was 12,135.71 RMB/ton, up 0.35% from the beginning of the week and down 5.56% year-on-year.

According to the price difference analysis tool of SunSirs, the prices of nickel and stainless steel were basically similar, and the rise and fall of stainless steel prices lagged behind that of nickel prices.

Analysis review

Last week, stainless steel inventories totaled 1.1063 million tons, down 0.44% from last week’ s previous week, with both cold rolled and hot rolled inventories increasing.

Raw materials: The nickel ore market has been relatively quiet recently, with prices remaining largely stable. Many Philippine mines were in the loading and shipping phase. Ferronickel prices have risen to 930-940 RMB/nickel (bottom price including tax). Ferronickel prices were stable but slightly stronger. Iron mills were operating at a loss and reducing capacity, while steel mills were generally adopting a wait-and-see approach to raw material procurement.

Supply and Demand: Forty-three domestic stainless steel mills were projected to produce 3.2531 million tons of crude steel in July, a 2.87% decrease from the previous month and a 1.67% decrease from the previous year. Of this total, 300 series stainless steel produced 1.7133 million tons, a 3.8% decrease from the previous month and a 4.7% increase from the previous year. In June, domestic stainless steel mills projected crude steel production of 3.3493 million tons, a 3.28% decrease from the previous month and a 1.85% increase from the previous year. Spot prices were temporarily stable, with little change in market purchasing prices. High-priced resources were struggling to move, and overall transaction volume in the finished product market was generally average.

Market outlook

Stainless steel mill maintenance has reduced supply, but the reductions haven't been as expected. Normal production was still being maintained during the postponement period, and short-term market supply pressure is unlikely to ease. Weak end-user demand remained a reality. Traditional downstream sectors were experiencing a low season, and growth in emerging downstream sectors is expected to decline overall. Purchases were primarily driven by essential needs to replenish inventory. Stainless steel prices are expected to fluctuate in the short term.

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