Stainless Steel Futures Opens Higher in the Morning Session, Low-Priced Resources Show Signs of Recovery [SMM Stainless Steel Spot Daily Review]

On December 4, stainless steel futures continued to rise in the morning session. However, in the afternoon, the transaction prices of NPI further declined, causing futures prices to start falling. In the spot market, the recent recovery in futures eased panic sentiment, leading to a slight recovery in low-priced resources and a reduction in the discount of mainstream transaction prices. However, actual downstream demand remained weak, and both buyers and sellers showed low willingness to trade. In terms of coil, CRC arrivals have increased recently, with more resources expected to be in transit, while HRC arrivals have slightly decreased. Overall prices are still determined by steel mill pricing or transactions are concluded at slight discounts. For flat products, downstream demand is weak, leading to significant pressure on sales and relatively low prices. In the short term, social inventory is expected to build up, and spot prices are likely to remain stable at low levels. On the morning of the same day, 304 cold-rolled resources in Wuxi were quoted at 13,150-13,300 yuan/mt, and 304 hot-rolled resources in Wuxi were quoted at 12,550-12,650 yuan/mt. 316L cold-rolled resources in Wuxi were quoted at 24,100-24,300 yuan/mt. 201J1 cold-rolled resources in Wuxi were quoted at 7,500-7,700 yuan/mt. 430 cold-rolled in Wuxi was quoted at 7,350-7,550 yuan/mt. At 10:30 AM, the SHFE SS2501 contract price was 13,085 yuan/mt, with Wuxi stainless steel spot premiums at 170-370 yuan/mt. (Spot cut edge = uncut edge + 170 yuan/mt).