Price trend

According to data from SunSirs, stainless steel prices remained relatively stable last week. As of November 14th, the average daily price of spot 304/2B stainless steel flat plate 1.0*1219*2438 (tolerance 0.91) was 11,650 RMB/ton, up 0.07% from the beginning of the week and down 7.49% year-on-year.

According to data from SunSirs' price spread analysis tool, nickel and stainless steel prices showed similar trends, with both showing an overall downward trend recently.

Market Analysis

Last week, total stainless steel inventory reached 1.071 million tons, up 3.5% from the previous week, with both cold rolled and hot rolled inventories increasing.

Raw materials: Ore prices remained firm. In the Philippines, the Surigao mining area was affected by typhoon weather, with some terminals still resuming operations, resulting in delays in loading and shipping. Overall, nickel ore supply in Indonesia was relatively ample. Nickel pig iron prices shifted downwards, exacerbating losses for domestic and Indonesian iron ore mills. Market quotations were concentrated around 935-940 yuan/nickel (including tax at the bottom of the tank), widening the psychological price difference between supply and demand. The sluggish stainless steel market indirectly weakened the ferrochrome market, increasing ferrochrome supply pressure. Coupled with falling chromium ore prices, raw material cost support declined.

Supply and Demand: Domestic stainless steel crude steel output was estimated at 3.4462 million tons, an increase of 19,500 tons month-on-month, a growth of 0.57%, and an increase of 4.72% year-on-year. November production was scheduled for 3.3752 million tons, a decrease of 2.06% month-on-month and an increase of 1.71% year-on-year. Affected by expectations of weak demand in the fourth quarter, several steel mills recently jointly reduced production to maintain prices, but this was mostly concentrated in 200 series steel mills, while 300 series production remaineeed high.

Market Forecast:

Supply remained under pressure, with steel mills jointly reducing production to maintain prices, but this iwas mainly concentrated in 200-series mills, while 300-series production remained high. Demand recovery was not significant, with downstream purchasing activity insufficient, primarily focused on immediate needs and stockpiling. In the short term, stainless steel prices are expected to  fluctuate and weaken within a narrow range.

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