[SMM Stainless Steel Daily Review] Sluggish Upward Momentum for SS, Sluggish Spot Stainless Steel Transactions at Year-End Off-Season

Published: Dec 29, 2025 17:46

Save

[SMM Stainless Steel Daily Review] SS Upward Momentum Weak, Year-End Off-Season Stainless Steel Spot Trading Sluggish: SMM, December 29: SS futures were in the doldrums. SHFE nickel's upward momentum weakened, and SS futures followed suit. Although it briefly climbed above 13,000 yuan/mt before noon, it fell again in the afternoon, closing at 12,910 yuan/mt. Spot market, the momentum for further rises in SS futures has slowed down. Coupled with the fact that spot prices have already increased from previous levels, downstream demand remained sluggish amid the year-end off-season, and there was a lack of further stimulating factors from news. Spot prices overall maintained a stable trend, with subsequent attention on stainless steel mills' production cuts and downstream winter stockpiling. The most-traded SS futures contract was in the doldrums. At 10:30 a.m., SS2602 was quoted at 12,975 yuan/mt, up 50 yuan/mt from the previous trading day. In Wuxi, the spot premiums/discounts for 304/2B were in the range of 145-395 yuan/mt. In the spot market, the average price for Wuxi cold-rolled 201/2B coil was 8,200 yuan/mt; for cold-rolled mill edge 304/2B coil, the average price in Wuxi was 13,075 yuan/mt, and in Foshan was 13,075 yuan/mt; for cold-rolled 316L/2B coil in Wuxi, it was 24,150 yuan/mt, and in Foshan, 24,150 yuan/mt; for hot-rolled 316L/NO.1 coil in Wuxi, it was quoted at 23,250 yuan/mt; for cold-rolled 430/2B coil in both Wuxi and Foshan, it was 7,600 yuan/mt. This week, the main theme of stainless steel trading quickly shifted from "weak reality" to "expectations trading." In...

SMM December 29, SS futures were in the doldrums. SHFE nickel futures showed limited upward momentum, and SS futures weakened in tandem. Although prices briefly climbed above 13,000 yuan/mt before noon, they pulled back again in the afternoon, closing at 12,910 yuan/mt. Spot market, the momentum for further rises in SS futures has slowed down. Spot prices have already increased from previous levels, but against the backdrop of year-end off-season demand, downstream demand remained sluggish, and there was a lack of further stimulus from news. Spot prices overall held steady. Market participants are awaiting further developments regarding stainless steel mill production cuts and downstream winter stockpiling.

The most-traded SS futures contract was in the doldrums. At 10:30 AM, the SS2602 contract was quoted at 12,975 yuan/mt, up 50 yuan/mt from the previous trading day. In Wuxi, the spot premiums/discounts for 304/2B were in the range of 145-395 yuan/mt. In the spot market, the average price for cold-rolled 201/2B coil in Wuxi was 8,200 yuan/mt. The average price for cold-rolled trimmed 304/2B coil was 13,075 yuan/mt in Wuxi and 13,075 yuan/mt in Foshan. In Wuxi, the price for cold-rolled 316L/2B coil was 24,150 yuan/mt, and in Foshan it was 24,150 yuan/mt. The price for hot-rolled 316L/NO.1 coil in Wuxi was 23,250 yuan/mt. The price for cold-rolled 430/2B coil was 7,600 yuan/mt in both Wuxi and Foshan.

This week, the main trading theme for stainless steel quickly shifted from "weak reality" to "expectations trading." Rumors of tightened approvals for Indonesian nickel ore first ignited bullish sentiment among financial funds, leading to a coordinated rally in the persistently low SS and SHFE nickel futures. Futures discounts narrowed rapidly, forcing spot stainless steel prices to follow the rise. Although year-end demand was at a seasonally low level, stainless steel social inventory destocking accelerated, down 3.7% WoW to 892,400 mt, driven by expectations of supply-demand contraction due to news of stainless steel mill production cuts, recent price surges stimulating a "rush to buy amid continuous price rise and hold back amid price downturn" mentality, and increased demand to export within a window period spurred by adjustments to domestic export policies (re-inclusion of stainless steel products within the export licensing management scope). Cost side, affected by nickel ore news and recent replenishment by some traders and small-to-medium steel mills, high-grade NPI prices stopped falling and strengthened. The decline in high-carbon ferrochrome prices was limited, providing stronger cost support for stainless steel. Overall, however, the recent strength in the stainless steel market relied heavily on support from news. The impact of the year-end demand off-season persists. Although prices rose in the short term driven by news stimulus, cost support, and expectations for production cuts, the market still faces some risk of a pullback.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or for more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

May 26, 2026 09:18

[SMM Stainless Steel Market Flash] TECO to Buy 78% of Malaysia’s Dynaciate for $50.8 Million

TECO Electric & Machinery has signed an agreement to invest about MYR 200 million, or roughly $50.8 million, to acquire about 78% of Malaysian engineering company Dynaciate Engineering. TECO said Dynaciate will become its global manufacturing hub for modular data center and power equipment products, while also serving as an engineering hub for its expansion in Southeast Asia’s data center infrastructure market.

May 26, 2026 09:18

May 25, 2026 18:26

[SMM Stainless Steel Market Flash] Report Says New Stainless Steel Can Operate in Seawater at up to 1700 mV

SS-H2 can operate in seawater at voltages of up to 1700 mV, well above the stable operating range of regular stainless steel. The report said this improved performance could help address corrosion and durability issues in seawater electrolysis systems, suggesting expanding potential for advanced stainless steel in hydrogen equipment applications.

May 25, 2026 18:26

May 25, 2026 18:25

[SMM Stainless Steel Market Flash] HKU Develops SS-H2 Stainless Steel for Lower-Cost Seawater Hydrogen Systems

A research team at the University of Hong Kong has developed a new stainless steel called SS-H2 for seawater-based hydrogen production systems. The reports said the material is designed to maintain stronger corrosion resistance under harsh, high-voltage operating conditions and could potentially replace more expensive titanium components now used in electrolyzers. The development is seen as a possible new materials route for lowering the cost of green hydrogen equipment.

May 25, 2026 18:25