Price trend

According to the price monitoring of SunSirs, the price of stainless steel haD slightly increased this week. As of September 20th, the daily average price of spot 304/2B stainless steel flat plate 1.0 * 1219 * 2438 (tolerance 0.91) was quoted at 12,500 RMB/ton, an increase of 0.52% from the beginning of the week and a decrease of 11.35% year-on-year.

According to the price difference analysis tool of SunSirs, the prices of nickel and stainless steel were basically similar, with a slight increase in recent prices.

Analysis review

This week's stainless steel inventory totaled 103.13 tons, an increase of 0.68% compared to last week, with both cold and hot rolled inventory rising.

From an upstream perspective, there was support from the Indonesian mining sector, and the cost support for nickel pig iron was still present. The latest transaction price was relatively strong, and the return flow of nickel pig iron in Indonesia was still tight, which continued to provide strong support for the cost of stainless steel.

From the supply side, the production of stainless steel crude steel in September was 3.3342 million tons, a month on month decrease of 0.74% and a year-on-year increase of 4.59%. There is an expectation of a decline in stainless steel production in October. Indonesia's spot supply was tight and the premium was gradually stabilizing. The market was waiting for the mining situation to ease. Domestic nickel pig iron may increase production in August due to improved profits, while Indonesia's nickel pig iron actually showed an increase in production in August and is expected to reduce production.

On the demand side, the demand for stainless steel had improved, and the recent fluctuations in the ferrous series had been repaired. Concerned about whether further real estate related stimulus measures will be introduced domestically. Stainless steel futures inventory had dropped to less than 120,000 tons.

Market outlook

Overall, the inventory of stainless steel in this period showed a slight accumulation after the holiday. The cost support logic existed, with low prices exacerbating losses, increased production scheduling in September, and further demand recovery needed. It is expected that the short-term trend of stainless steel will mainly fluctuate slightly.

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