SunSirs: Last Week, Stainless Steel Prices Increased Slightly (January 5-9)

Price trend:

According to price monitoring by SunSirs, stainless steel prices rose slightly last week. As of January 9th, the average daily price of 304/2B stainless steel sheets (1.0*1219*2438, tolerance 0.91) was 12,383.33 RMB/ton, a 5.77% increase from the beginning of the week and a 3.56% increase year-on-year.

According to the price difference analysis tool from SunSirs, the price trends of nickel and stainless steel were similar, both showing a significant upward trend recently.

Market analysis

Last week, total stainless steel inventory amounted to 948,300 tons, a decrease of 2.97% compared to the previous week. Both cold rolled and hot rolled steel inventories decreased.

Raw Materials: Regarding nickel ore, the Indonesian Minister of Energy and Mineral Resources stated that the nickel ore quota would be "matched to production needs," a more relaxed expectation compared to the 250 million tons previously announced by the association. In the nickel ore market, the Philippines' Benguet mine was tendering 1.25% nickel ore, but no deals have been finalized yet, and the mine maintained a bullish outlook; Indonesia lowered its nickel ore quota expectations, and the Indonesian domestic benchmark price for January (Phase 1) increased by $0.05-0.08/wet ton. Nickel pig iron prices rose significantly, with mainstream market quotations rising to 970-980 RMB/nickel (FOB, including tax), and mainstream transaction prices concentrated around 950 RMB/nickel; the supply of ferrochrome spot resources was limited, coupled with a slowdown in the increase of ferrochrome supply, resulting in relatively firm ferrochrome retail prices.

Supply and Demand: In January, estimated crude stainless steel production is 3.327 million tons, a month-on-month increase of 1.83% and a year-on-year increase of 16.27%; 300 series production is 719,300 tons, a month-on-month decrease of 2.5% and a year-on-year increase of 9.78%. As of January 9, the overall production cuts by steel mills were limited. Increased maintenance at steel mills at the end of the year and pressure from losses may force more steel mills to proactively reduce production. During the off-season for demand, construction projects were slowing down, procurement was weak, and downstream companies were facing significant financial pressure, making it difficult for the demand side to absorb high price increases.

Market Outlook

Fundamental supply pressures have eased slightly, and cost support from mining and nickel pig iron has strengthened, but demand remained weak during the off-season. Recent news regarding raw materials had a significant impact on the market. The interplay between strong cost support and weak demand suggests that stainless steel prices are likely to fluctuate and adjust in the short term.

If you have any inquiries or purchasing needs, please feel free to contact SunSirs with support@sunsirs.com.