SunSirs: Stainless Steel Prices Had Slightly Decreased This Week (July 15-19)
July 22 2024 11:28:04 SunSirs (John)
Price trend
According to the price monitoring of SunSirs, the price of stainless steel had slightly decreased this week. As of July 19th, the daily average price of spot 304/2B stainless steel flat plate 1.0 * 1219 * 2438 (tolerance 0.91) was quoted at 12,835.71 RMB/ton, a decrease of 0.5% from the beginning of the week and a year-on-year decrease of 4.57%.
According to the price difference analysis tool of SunSirs, the prices of nickel and stainless steel were similar. Recently, the prices of nickel and stainless steel had both slightly decreased.
Analysis review
This week's stainless steel inventory totaled 110.87 tons, an increase of 1.94% compared to last week, with both cold and hot rolled inventory rising.
From the supply side, the production of stainless steel crude steel in July was 3.2467 million tons, a decrease of 1.27% month on month. The production of stainless steel in July may further decline, but the supply contraction was not significant. Due to the sustained low price of stainless steel and the continuous decrease in profits of the 300 series, some steel mills had begun to adjust their production pace and production plans overall.
The overall production of stainless steel crude steel in the second quarter performed well, with an increase of 1.1121 million tons or 16.93% compared to the first quarter. However, data shows that the production of 300 series stainless steel in the second quarter accounted for only 52.79%, a decrease of 2.69 percentage points from the first quarter. The production adjustment plan had triggered market wait-and-see, and businesses were concerned about nickel demand. In the second half of 2024, with the sluggish growth rate of real estate completion, the demand for stainless steel in the real estate sector is expected to further decline. Downstream replenishment operations are cautious, with market shipments mainly focused on essential purchases, and there is still pressure to reduce stainless steel inventory.
Market outlook
Overall, stainless steel prices had fluctuated downward, downstream demand remained weak, the macroeconomic situation was not good, and the market was showing a strong wait-and-see attitude. In the short term, stainless steel prices may operate weakly and steadily.
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