This week, the Chinese stainless steel market saw a slight increase in spot prices, though not as pronounced as in the futures market. As the year-end approaches, downstream demand remains moderate, leading to a slight increase in social inventory. The market anticipates significant pressure from upcoming deliveries, maintaining a cautious outlook on demand release and steel mill production planning. Short-term price volatility is expected.
The week witnessed an upward trend in stainless steel futures prices, yet overall trading volumes were low. Concerns about insufficient downstream consumer demand are evident. Spot market prices marginally rose, influenced by futures, but weak downstream demand led to an overall cautious market, with not high inventory levels.
Changes in raw material prices were minimal, with steel mills operating on thin margins. Pressure from market deliveries continues to persist. Social inventory experienced a minor increase due to demand constraints, and while agency stocks aren’t substantial, the pressure for future deliveries has intensified. The market is now focusing on the dynamics of demand release and steel mill production schedules.
The registered warehouse receipts for stainless steel at SHFE saw an increase this week, with spot prices slightly rising but not matching the increase in futures. The market is set to enter a stockpiling phase, and fluctuations in futures prices might impact the market’s stocking rhythm and steel mills’ production plans.
Post time: Jan-15-2024
