Stainless steel futures prices hit a three-year low, dragging down spot price as well

Stainless steel futures prices consistently dropped to a three-year low, with a weak trend in the spot prices of 304-series stainless steel. The overall arrivals of the 300 series remained limited, especially for cold-rolled products. Low arrivals and price cuts drove stocks of 300-series cold-rolled products to fall, while stocks of 300-series hot-rolled products are mounting. For the 200 and 400 series, a slight increase in arrivals and weak demand led to inventory accumulation.

In terms of raw material, regarding NPI, the cost support weakened and prices continued to fall. As for high-carbon ferrochrome, the market generally holds a bearish view on steel procurement prices for the next month. However, with current cost support, there is currently no low-priced supply in the market.

In summary, despite recent inventory reductions in stainless steel, it is primarily due to reduced production by stainless steel plants. In view of sluggish demand and falling cost, stainless steel prices are still under downward pressure this week.