SunSirs: Stainless Steel Prices Had Slightly Increased This Week (October 7-11)

Price trend

According to the price monitoring of SunSirs, the price of stainless steel had slightly increased this week. As of October 10th, the daily average price of spot 304/2B stainless steel flat plate 1.0 * 1219 * 2438 (tolerance 0.91) was temporarily quoted at 13,078.57 RMB/ton, an increase of 3.98% from the beginning of the week and a decrease of 4.41% year-on-year.

According to the price difference analysis tool of SunSirs, the prices of nickel and stainless steel were basically similar, and the price of stainless steel fluctuated with the rise and fall of nickel prices.

Analysis review

This week, the total inventory of stainless steel was 101.04 tons, a decrease of 0.4% compared to last week, with an increase in cold-rolled inventory and a decrease in hot-rolled inventory.

From an upstream perspective, with the continuous rebound of the pre holiday market, the willingness of steel mills to purchase raw materials had increased. After the holiday, the spot price of nickel iron had also increased, and the cost support of stainless steel had become stronger.

From the supply side, in September, the crude steel production of 43 stainless steel plants in China was 3.2888 million tons, a decrease of 2.09% month on month. In October, the production was 3.244 million tons, a decrease of 1.36% month on month. The decrease in crude steel production in September and October was mainly reflected in the 200 and 400 series, with little overall fluctuation in the production of the 300 series. In addition, the current profits of steel mills have been restored, and there may be a significant increase in production enthusiasm in the future. It is necessary to pay attention to the actual production pace of steel mills.

On the demand side, benefiting from the positive sentiment before the holiday, the market transactions had significantly improved in the early stage of resumption of work, and most merchants had reported an increase in shipment volume.

Market outlook

At the beginning of the post holiday period, with a significant increase in futures prices, spot prices rose accordingly, and then the market surged and fell back. Some traders profited from cashing out and shipping, and most spot prices fell. Under the support of macro policies, market confidence has been significantly boosted, coupled with a decrease in steel plant production and no accumulation of social inventory. The rise in raw material prices provides bottom support, and it is expected that stainless steel prices will show a volatile upward trend after a correction in October.

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