Stainless steel prices showed weak trading, with the price center pulling back. [SMM Stainless Steel Spot Daily Review]

On April 22, SS futures prices showed a weak pullback. Recently, stainless steel prices have remained stable but lack upward momentum. Due to persistently sluggish procurement demand from downstream end-users, market participants' confidence is significantly insufficient. Some traders, under transaction pressure, chose to offer discounts, leading to an overall downward shift in the transaction price center.

In the futures market, the most-traded contract 2506 fluctuated. At 10:30 AM, SS2506 was quoted at 12,710 yuan/mt, down 50 yuan/mt from the previous trading day. In the Wuxi region, the spot premiums/discounts for 304/2B were in the range of 510-660 yuan/mt. In the spot market, the cold-rolled 201/2B coils in Wuxi and Foshan were both quoted at 8,250 yuan/mt; the cold-rolled trimmed 304/2B coils averaged 13,125 yuan/mt in Wuxi and 13,155 yuan/mt in Foshan; the cold-rolled 316L/2B coils were 23,650 yuan/mt in Wuxi and 23,800 yuan/mt in Foshan; the hot-rolled 316L/NO.1 coils were both quoted at 22,900 yuan/mt in both regions; the cold-rolled 430/2B coils were both 7,500 yuan/mt in Wuxi and Foshan.

Currently, the potential impact of US tariff policies has not been fully realized, and market expectations for future trends remain unclear. Affected by this, downstream enterprises generally maintain a cautious wait-and-see attitude, leading to continued weak market transactions. The previous optimistic expectations for a price rebound have gradually faded, and prices have also gradually pulled back. Today, Tsingshan Group announced the May high-carbon ferrochrome steel tender price, which exceeded previous market expectations. This situation has somewhat reduced the likelihood of significant production cuts by stainless steel mills. From the raw material side, nickel prices have fallen to relatively low levels, while chromium procurement prices have risen. Overall, the cost support for stainless steel still exists. Based on the above factors, it is expected that the downward space for stainless steel prices is limited.