[SMM Stainless Steel Daily Review] SS futures consolidated on a strong note, spot stainless steel remained stable with off-season rigid demand transactions.
[SMM Stainless Steel Daily Comment] SS Futures Consolidate on a Strong Note; Spot Stainless Steel Holds Steady with Off-Season Need-Based Deals
SMM reported on August 12: SS futures showed a consolidation pattern on a strong note overall, though gains were rather limited. As of the close, the most-traded SS futures contract settled at 14,535 yuan/mt. In the spot market, although SS futures edged up, spot quotes did not show notable fluctuations, with a focus on stable quotes and active selling. Market inquiry activity picked up somewhat, but against the backdrop of the demand off-season, actual transactions remained need-based.
The most-traded SS futures contract. At 10:15 a.m., SS2610 was at 14,555 yuan/mt, up 35 yuan/mt from the previous trading day. Spot premiums for 304/2B in the Wuxi region were in the range of 315-765 yuan/mt. In the spot market, the average price of Wuxi cold-rolled 201/2B coil was stable; for cold-rolled raw edge 304/2B coil, average prices were flat in Wuxi and Foshan; cold-rolled 316L/2B coil prices in Wuxi were unchanged; for hot-rolled 316L/NO.1 coil, quotes in Wuxi were flat; and cold-rolled 430/2B coil prices in both Wuxi and Foshan were unchanged.
This week, stainless steel futures were disrupted by both industry news and capital flows, experiencing wild swings with an intense tug-of-war between longs and shorts. News about additional nickel ore quotas under Indonesia’s RKAB repeatedly disturbed market expectations during the week, and with shifting capital flows in futures, SS futures rose first and then fell, briefly testing the 15,100 yuan/mt mark mid-week. However, as expectations of growth in nickel ore quotas heated up, bulls’ confidence evaporated, and futures pulled back to a weaker level…