SunSirs: Stainless Steel Prices Rose Slightly Last Week

According to the price monitoring of SunSirs, stainless steel prices rose slightly last week. As of May 16, the average daily price of spot 304/2B stainless steel flat plate 1.0*1219*2438 (tolerance 0.91) was 12292.86 RMB/ton, up 1.47% from the beginning of the week and down 6.08% year-on-year.

According to SunSirs price difference analysis tool, nickel and stainless steel prices are basically similar, nickel prices have fallen slightly, and stainless steel prices will lag behind.

Last week, stainless steel inventories totaled 110.8 million tons, down 0.42% from the previous week, among which cold-rolled coil inventories fell and hot-rolled coil inventories rose.

In terms of macroeconomics, the results of the tax negotiations between China and the United States are relatively optimistic and slightly exceeded expectations overall, but there is still room for uncertainty in the future; domestic policies promote high-quality development and improve the overall market mentality.

Raw materials: Philippine resources for June are expected to be sold in bulk next week, with 1.4% nickel ore FOB at around 40; Indonesia's domestic trade premium for the second phase of nickel ore in May remained unchanged at +26-27, and the domestic trade base price rose by 0.65-1 US dollars. The overall price rose slightly, and the supply of nickel ore was still tight under the influence of the rainy season. The price of nickel iron remained weak and stable, and nickel iron purchases were still mainly based on price reduction. The mainstream steel mills were at 940 RMB (including tax at the factory), and the iron mills suspended quotations, and domestic factories suffered losses.

Supply side: In May, 43 domestic stainless steel mills are expected to produce 3.4899 million tons of crude steel, a decrease of 0.4% month-on-month and an increase of 5.8% year-on-year; of which 300 series was 1.776 million tons, a decrease of 2.6% month-on-month and an increase of 7.5% year-on-year. In April, the output of stainless steel crude steel was 3.5025 million tons, and the output of 300 series was 1.8243 million tons.

Demand side: Demand has a certain resilience but is still recovering slowly. The recovery of manufacturing orders is slow, and procurement is mainly based on rigid demand to replenish inventory.

Supply side: Some steel mills cut 300 series production in May and increased 200 and 400 series production to ease losses, but the overall oversupply pattern has not changed. The mining side has some support for prices, the price of raw material nickel iron has loosened, the output of stainless steel remains high, and the market still faces pressure to destock. It is expected that stainless steel will fluctuate in a range.

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