Price trend
According to price monitoring by SunSirs, stainless steel prices first fell and then increased slightly in May. At the beginning of the month, the stainless steel price was 14,257.14 RMB/ton, and at the end of the month, the stainless steel price fell to 13,828.57 RMB/ton, with an overall decrease of 3.01% and a year-on-year decrease of 21.83%.
According to data from SunSirs, in May, the price trends of stainless steel and nickel were basically the same, with stainless steel prices becoming relatively flat.
Analysis review
According to monitoring data from SunSirs, the upstream raw materials of stainless steel had all slightly declined, with nickel experiencing the largest decline.
Stainless steel inventory: In May, stainless steel inventory fell. As of the end of the month, the total inventory of stainless steel was 1.062 million tons, a decrease of 6.03% compared to the beginning of the month.
Fundamentals: In May, the prices of raw nickel, scrap steel, and iron ore all experienced varying degrees of decline, driving the price of stainless steel to follow suit. In May, the steel factory's production schedule reached a new high, but the actual production may not be as expected. As resources in transit arrived, supply pressure gradually emerged. The overall performance of stainless steel terminal demand in the first quarter was lackluster, with no significant difference between peak and low seasons. In May, stainless steel demand remained in a weak recovery state, making it difficult to see a significant rebound.
Market outlook
In summary, as of the 30th, the production enthusiasm of steel mills was average, and they were cautious about scheduling production in June. The market maintained a weak state of supply and demand, and stainless steel inventory pressure was not significant. Steel mills and traders had limited willingness to proactively reduce prices. However, with the loosening of raw material prices and the downward shift of cost center, stainless steel prices are mainly operating around the weak cost line, and it is expected that stainless steel prices will be mainly weak in June.
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