Limited Near-Term Fundamental Catalysts for Sheets & Plates; Expected to Hold Up Well Next Week on Cost-Side Strength

[SMM Stainless Steel Daily Review] Macro Disturbances Dragged SS Futures Lower; Low Inventory Pressure and Rigid Demand Supported Stainless Steel Spot Prices SMM, May 15 — SS futures continued to be in the doldrums. Non-ferrous metal futures extended the previous day's decline, and SS also fluctuated downward in tandem. As of the morning close, the most-traded SS contract was quoted at 14,825 yuan/mt. Spot market side, dragged by the persistently weak SS futures, stainless steel spot prices pulled back in tandem. However, stainless steel social inventory has been on an overall downward trend recently, and traders faced relatively small shipment pressure. Market confidence remained stable, and price declines were relatively limited. The most-traded SS contract fell and pulled back. At 10:15 AM, SS2605 was quoted at 14,890 yuan/mt, down 60 yuan/mt from the previous trading day. Spot premiums for 304/2B in the Wuxi area were in the range of 380-680 yuan/mt. In the spot market, the average price of cold-rolled 201/2B coils in Wuxi remained flat; for cold-rolled untrimmed 304/2B coils, the average price in Wuxi fell 100 yuan/mt, and the average price in Foshan fell 100 yuan/mt; cold-rolled 316L/2B coils in the Wuxi area held steady; hot-rolled 316L/NO.1 coils were quoted stable in Wuxi; cold-rolled 430/2B coils in both Wuxi and Foshan held steady. The stainless steel market was dragged by the weak and volatile futures, with notable downward pressure, but overall spot price declines remained limited, highlighting the divergence between futures and spot. Downstream end-users adopted a cautious wait-and-see stance due to macro uncertainties, with no concentrated restocking observed. However, rigid demand purchases remained solid, and the resilience of rigid demand provided a foundation for spot prices...

According to PBoC data, at the end of April, the balance of broad money (M2) stood at 353.04 trillion yuan, up 8.6% YoY. The balance of narrow money (M1) was 114.58 trillion yuan, up 5% YoY. The balance of currency in circulation (M0) was 14.75 trillion yuan, up 12.2% YoY. Net cash injection in the first four months totaled 653 billion yuan.

Today, the DCE Iron ore futures showed a weak-then-strong pattern today. The most-traded contract I2609 ultimately closed at 817 yuan/mt, basically flat compared to the previous trading day. Port spot prices were down 2-5 yuan/mt from the previous day. Traders offered prices in line with the market; steel mills purchased as needed; overall spot trading sentiment was lukewarm.