SMM reported on August 27 that the SS futures showed a stable fluctuating trend. As macroeconomic news was gradually digested, the momentum for further increases in SS futures weakened, with prices oscillating around 12,850 yuan/mt during the day. In the spot market, although the "September-October peak season" is approaching, nickel and chromium procurement prices have risen slightly. With SS futures stabilizing, recent spot transactions were moderate, but downstream acceptance of higher prices was limited, and spot traders' quotations remained steady, lacking further upward momentum.
In the futures market, the most-traded 2510 contract fluctuated. At 10:30 am, SS2510 was quoted at 12,890 yuan/mt, up 30 yuan/mt from the previous trading day. The spot premiums/discounts for 304/2B in Wuxi ranged between 330-480 yuan/mt. In the spot market, Wuxi cold-rolled 201/2B coils were quoted at 8,100 yuan/mt; cold-rolled 304/2B coils, with an average price of 13,125 yuan/mt in Wuxi and Foshan; cold-rolled 316L/2B coils, 25,675 yuan/mt in both Wuxi and Foshan; hot-rolled 316L/NO.1 coils, 25,100 yuan/mt in both regions; and cold-rolled 430/2B coils, 7,400 yuan/mt in both Wuxi and Foshan.
Last week, SS futures continued to decline, erasing all gains made this month and falling back to the level at the end of July, with the low point reaching the key threshold of 12,700 yuan/mt. Affected by this, the spot market also weakened. Downstream markets had already shown low acceptance of high prices, and with the significant pullback in futures, as well as traders offering discounts under pressure to sell, spot quotations fell. However, even with the price cuts, there was no effective boost in transactions, as the market generally exhibited a "rush to buy amid continuous price rise and hold back amid price downturn" sentiment, leading to a more pronounced wait-and-see sentiment and further deterioration in transaction volumes. But as the "September-October peak season" approaches, there are reports of production cuts in stainless steel mills, and actual production schedules may be slightly lower than expected. Recently, stainless steel social inventory has seen a seven-week consecutive decline, and with nickel and chromium raw material prices rising, along with increased expectations for US Fed interest rate cuts, and the national "anti-rat race" policy support, these multiple factors have led to signs of a stop falling and rebound in stainless steel prices this week.
![[SMM Stainless Steel Daily Review] SS futures price retreated after a rapid rise, stainless steel spot trades cooled.](https://imgqn.smm.cn/usercenter/GGaSo20251217171716.jpg)
![[SMM Stainless Steel Daily Review] SS futures center moved up, spot stainless steel market sentiment recovered](https://imgqn.smm.cn/usercenter/JSngP20251217171719.jpg)
