Price trend

According to the price monitoring of SunSirs, the price of stainless steel fell slightly in November. At the beginning of the month, the price of stainless steel was 15,955.71 RMB/ton. At the end of the month, the price of stainless steel rose to 15,371.43 RMB/ton, with an overall decline of 3.66%, and down 9.62% year on year.

According to the data from SunSirs, in November, the price of stainless steel was weaker than the upstream nickel price.

Analysis review

According to the data from SunSirs, the upstream of stainless steel had risen, while stainless steel price was weak. Mainly due to entering the traditional slack season, the demand effect in the golden September and silver October peak season was fading, the overall demand for stainless steel was weak.

Stainless steel inventory: In November, the overall stainless steel inventory fell. As of the end of the month, the total stainless steel inventory was 653,200 tons.

Fundamentals: The upstream pure nickel spot was high, while the downstream transactions remained weak, and short-term market prices might remain volatile due to macro disturbances. In terms of nickel ore, the supply and demand remained weak, but the willingness to support the price of the mine was strong, which was expected to be unsustainable due to the drag of weak fundamentals. In terms of ferronickel, the disturbance of export tax news had made Indonesian ferronickel invisible inventory flow into the market, while the demand support also continued to weaken, and ferronickel may have further room for decline. The scale of production reduction of steel plants may be expanded in the future, which will form a certain support for the price of stainless steel, but the downstream transactions are not improved, making it difficult for stainless steel to keep breaking through.

Market outlook

To sum up, the end of the year is the off-season of consumption. The domestic epidemic situation is severe, the logistics is blocked, the willingness of downstream procurement is low, and the transaction remains weak. The demand for stainless steel is difficult to recover in the short term, and the price of stainless steel is expected to remain weak mainly in December.

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